Construction spending rose in July, as companies and the government increased projects across the U.S.
Spending on construction projects rose 0.7% in June to $1.97 trillion, the Commerce Department reported Friday.
The figure exceeded expectations on Wall Street. Economists were expecting construction spending to rise 0.5% in July.
Construction spending reveals how much the government and private companies spend on projects, from housing to highways. The more the U.S. spends on construction, the higher the level of economic activity.
The government revised spending on construction in June to 0.6% from an initial read of a 0.5% increase.
Over the past year, construction spending was up 5.5%.
In terms of residential real estate, private residential construction rose 1.4% in July from the month before. Single-family construction rose 2.8% in July, while multifamily construction rose by 0.2%.
Spending on public residential construction rose by 2.6%.
Stocks
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were up in early trading on Friday. The 10-year Treasury note
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fell below 4.2%
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