A double dose of hopeful economic news was released today. Construction spending rose for the second time in three months in June as residential building increased, fresh evidence that the housing sector may be recovering.
The Commerce Department says construction spending increased by a seasonally adjusted annual rate of 0.3% in June, defying analysts’ estimates of a 0.5% drop. Still, construction spending of $965.7 billion is 10.2% below the year-ago level. Residential construction rose at a 0.5% rate after dropping 3.1% in May.
Meanwhile, the Institute for Supply Management reports that while manufacturing activity slowed during July, it did so at the slowest pace in nearly a year. The ISM says its manufacturing index rose to a better-than-expected 48.9 from 44.8 in June. A reading above 50 indicates growth. The data follow reports earlier this month that new and existing home sales each rose in June, and new home construction jumped by the largest amount in eight years.
