The homebuilding industry posted another gain in construction spending in June, marking the third consecutive month for increases, the Commerce Department reported Wednesday.
After a sluggish last few years, the homebuilding industry continues to dig toward a recovery, posting big year-over-year improvements that has many analysts saying the sector has finally reached the tipping point toward recovery.
In June, construction spending increased 0.4 percent. Last month, spending gained 1.6 percent -- an upwardly revised number -- which marked the largest one-month increase since December. The increase has been most driven by a rise in residential housing construction.
Overall, June construction spending was up 12.9 percent compared to February 2011, which at the time had marked a 12-year low for the sector.
However, economists warn that the homebuilding industry still has a long way to go. While there has been recent improvement, construction spending levels are still about half of what most consider healthy for the industry.
Source: “Construction Spending Rises in June, but Manufacturing Slows,” USA Today (Aug. 1, 2012)
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