Dive Brief:
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Spending on construction projects jumped 1.8% in July, the largest amount in a single month for more than two years, the Commerce Department reported Tuesday.
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The hike came after a 0.9% decline in spending in June, which was the steepest drop in a year. The culprit was a rainy spring that slowed construction in some regions, the report said.
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Despite that temporary setback, construction spending has climbed by 8.2% over the past year. Spending was up in all construction categories, including housing, government, and commercial.
Dive Insight:
Healthy construction spending is a major catalyst for economic improvement, so the Commerce Department report “provides further evidence that a vigorous nonresidential construction recovery is finally at hand," said Anirban Basu, chief economist for Associated Builders and Contractors. Economists are predicting that building activity, coupled with greater consumer confidence, will move economic growth forward throughout 2014.