Construction Spending Beats 8 Year Records

The amount of money spent by the government on matters that require immediate initiatives has always been strikingly huge but this year, the spending made by the country on construction has seen stark increases. The construction spending that got instigated by some handsome gains in home building has reached new heights. This year, we also saw the largest rise in the federal construction expenditures from the past 9 years.

Construction spending reaches new heights:

The construction spending, as reported by the Commerce department took a 1 percent rise during the month of October and has since then gotten raised to a gigantic sum of over 1.1 trillion dollars. It was in December 2007 when last we saw such a huge figure. It’s also worth noting that the country was dealing with the great recession at that time.

This rise can boil down to be caused by a lot of things. The single family apartments and homes’ construction saw a 1 percent rise (Which is once again the highest since December of 2007). The federal government construction expenditure also saw around 19 percent rise, which is in fact the heaviest rate of increase seen since October 2006. Apart from this, the manufacturing construction costs also saw a 3 percent rise.

All in all, during the past 12 months, overall the construction spending has seen around 13 percent rise from last year which is something really startling to say the least. Many citizens have started building newer homes and apartments to better their standard of living and this can be credited with making the increase be so gigantic as well.