Construction Spending Rebounds in August

Construction spending rose 1.4% in August, turning around a decline of the same size in July, the Commerce Department said Monday.

The spending — which was in contrast to economists’ forecasts of a 0.2% decline — was led by a jump in state and local government construction spending, Bloomberg reported.

July’s decline, the biggest in six months, was originally reported as a 1.3% decline.

Private construction spending rose 0.4%, with homebuilding up 0.7% and non-residential spending rising 0.2%.

Public construction spending jumped 3.1% from July, led by a 3.5% surge in state and local government spending. Federal construction spending fell 0.5%.

Construction spending can boost demand for trucking services because spending increases the number of shipments of goods and building materials.