Construction spending rises in June

Construction spending increased in June.

The U.S. Department of Commerce recently noted that total construction spending rose significantly during June to its highest level since fall 2009.

Spending rose to an annual rate of $842.1 billion in June, which was 0.4 percent higher than the previous month's figure of $838.3 billion. However, the figure is 7 percent higher than the same point in 2011, which had a total spending rate of $786.8 billion.

"Starts and permits are up, supply is tight, there's pent-up demand out there, credit is slowly getting better," Gus Faucher, a senior economist at PNC Financial Services Group, told Bloomberg. "There's definitely a rebound on the residential side, there may be a rebound on the commercial side."

Property management companies experienced the residential construction rate increase 1.3 percent to $265.6 billion from the previous month's $262.1 billion. Nonresidential construction had an uptick of 0.1 percent to $302.3 billion from May's $302.1 billion.

The report added that construction spending for the first half of 2012 was 9 percent higher than the same point last year, and totaled $387.1 billion.

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