Construction spending moved up in September to the highest level seen in nearly three years, thanks largely to a boost by the housing sector. Overall, spending was up 0.6% for the month, while spending on single-family homes was up 3.9%. And Bill Cheney, chief economist for John Hancock Financial Services Inc., predicts that more good news may be on its way. “The fiscal cliff certainly seems to have affected business capital spending of all kinds, including construction,” Cheney said, according to Bloomberg. “I assume we’re going to see a huge boost in construction spending as we start rebuilding.” He estimates this likely will happen in the second quarter of 2013. See Bloomberg’s full report here.
Construction Spending Gains as Housing Lifts
The sector is expected to improve dramatically in the near term, one economist says.
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