Builders Spend More in September

U.S. builders spent slightly more in September on home construction, partially offsetting losses in public schools, roads and government offices, according to several news reports.

The Commerce Department announced construction spending rose 0.2 percent in September from August to a seasonally adjusted annual rate of $787.2 billion. It was the second straight monthly increase.
Still, spending is barely half the $1.5 trillion that economists consider healthy, says a report from the Associated Press. Through the first nine months of the year, spending is at $580.9 billion, about 3.5 percent below the same period in 2010.

The biggest gains in September were in private residential construction, which increased 0.9 percent. Public construction projects, which include schools, roads and government offices, fell 0.6 percent in September.
Home builders started projects in September at the fastest pace in 17 months, according to the Associated Press. The news report indicates most of the gain was driven by a surge in apartment construction, which is being seen as a sign that many are choosing to rent rather than own a home.

Americans bought fewer homes during this year's peak buying season than at any time in the past half-century, according to the Associated Press. In September, sales of new homes rose after four straight monthly declines. “This year is shaping up to be the worst for new-home sales on records dating to 1963,” the article states.