US construction spending likely remained on an uptrend

Paced by an anticipated acceleration in home-building activity, the nominal value of new construction put-in-place probably expanded by 0.8% in August, boosting the cumulative rise since last November to 11.8%. Residential outlays likely jumped by 1.5% during the reference period, accounting for a little over two thirds of the pickup in total spending last month. Commercial (0.5%) and public-project (0.2%) expenditures probably both posted modest gains in August - the first simultaneous increases since May. The Census Bureau's has boosted previously reported spending figures over the past four months.

"Our projections, if realized, would place construction spending over the July-August span, 9.6% annualized above the April-June average, after a 29.4% leap during the spring quarter", says Societe Generale.