Ahead of the Bell: US construction spending

The Associated Press
US construction spending up 0.7 percent in August

In this Sept. 15, 2015 photo, an iron worker works on the new Comcast Innovation and Technology Center under construction, in Philadelphia. The Commerce Department reports on U.S. construction spending in August on Thursday, Oct. 1. (AP Photo/Matt Rourke)

WASHINGTON (AP) -- The Commerce Department reports on September U.S. construction spending at 10 a.m. Eastern Monday.

ANOTHER GAIN: Economists expect spending rose 0.4 percent, according to a survey from the data firm FactSet.

A SEVEN-YEAR HIGH: In August, spending on U.S. construction projects rose 0.7 percent to a seasonally adjusted annual rate of $1.09 trillion, highest since May 2008. Home building and government construction projects drove the increase, which followed gains of 0.4 percent in July and 0.6 percent in June. The 1.3 percent rise in August home construction reflected a 4.8 percent surge in apartment construction and a more modest 0.7 percent rise in construction of single-family homes.

In its report on overall third-quarter economic growth Thursday, Commerce said that the overall economy grew at annual pace of just 1.5 percent from July through September; but investment in housing grew more than four times that fast — at an annual pace of 6.1 percent.