Construction spending in the United States of America had rebounded in August after it saw declines for two consecutive months which was boosted in August by the increase in both the public and private outlays. The Commerce Department confirmed on Monday that the total amount spent on construction rose 0.5 percent to 1.21 trillion dollars. The construction outlays in July were revised sharply and were down to about a 1.2 percent plunge instead of the 0.6 percent that was previously reported. A poll was conducted where they had forecasted construction spending to rise about 0.4 percent in August and the overall increase would be about 2.5 percent on a yearly basis.
The government stated that the two killer hurricanes, Irma and Harvey did not appear to have made a significant impact on the data of construction spending. This can be understood from the fact that the responses from Florida and Texas, which were the affected areas by the storms, were no less as compared to the normal. In August, the overall spending on private residential projects increased by 0.4 percent which showed a rise for four consecutive months back to back. However spending on nonresidential structures had increased by 0.5 percent this after two months of a constant decline. Due to the storms, Harvey and Irma the spending on nonresidential construction could result in a fall in September. As per the Commerce Department, Florida and Texas accounted for a total of 22 percent of the total spending on private nonresidential construction of the United States of America in the year 2016.
The investment in nonresidential construction, such as oil and gas wells has been slowing down as the boost from recovering oil prices fizzles. The spending on private construction projects increased by 0.4 percent in August, the outlays on public construction projects rebounded 0.7 percent in August after going down by 3.3 percent in July. The overall spending on State and the local government construction projects increased by 1.1 percent in August, the gains in the month of September is expected to be curbed to some extent due to the effect of the two killer hurricanes.