US Construction Sector Spending Up 1.2 Percent

Construction in the US is continually on the rise.

After news that employment in the sector had reached a three-year record high in February, the month also showed spending up 1.2 percent.

Reported on Monday by the Commerce Department, the recovering property sector had activities increase both in public and private building.

In February, construction spending was estimated to be $885.1 billion as a seasonally adjusted yearly rate. This was 1.2 percent up from January's $874.8 billion, the department's report said.

Compared with February's figure in 2012, the level was up 7.9 percent. Private construction spending was at a seasonally adjusted annual rate of $613.0 billion in February 2013. This was up 1.3 percent from the revised estimate for January. For public construction, the estimated seasonally adjusted annual rate was 0.9 percent up from January's revised figure to $272.1 billion in February.

US Construction Spending Up

For all of last year, construction spending rose 9.8 percent. After five consecutive years on declines, this was the first annual gain.

Single-family construction spending increased 4.3 percent in February, which helped offset a 2.2 percent decrease in apartment construction. Compared to year ago, residential activity has increased a whopping 20.1 percent.

February's small 0.4 percent increase in nonresidential construction followed a dramatic 5.9 percent dip in January.

February also saw the fastest pace for future construction requested permits from US homebuilders in four and a half years. Single-family home building began also began at the quickest pace in that time period.

Increased demand for previously owned and new homes has helped propel home prices. For the year ending January, home prices in the US were up 8.1 percent, according to Standard & Poor's/Case-Shiller 20-city index. In all 20 cities surveyed, prices increased, with eight markets reporting gains with double-digits.

Six years on from the bubble bursting, the US housing sector is still struggling for a U-turn. While recent price indicators and sales were mostly upbeat, many economists regard the housing industry as having a long road to travel before making a full recovery.