WASHINGTON (April 1, 2013)--Spending on construction projects rebounded in February, helped by a surge in home construction, which rose to the highest level in more than four years, the U.S. Commerce Department said Monday.
The Commerce Department says construction spending rose 1.2 percent in February, compared to January, when construction had dropped 2.1 percent.
Spending rose to a seasonally adjusted annual rate of $885.1 billion, 7.9 percent higher than a year ago.
The advance was led by a 2.2 percent rise in private residential construction, which advanced 2.2 percent to an annual rate of $303.4 billion, the best showing since November 2008.
Private nonresidential construction was up 0.4 percent while public construction rose 0.9 percent.
Construction spending is expected to keep growing this year, fueled by more homebuilding and broader improvement in the economy.