Construction spending in the U.S. grew by slightly more than expected in the month of July, although the upside surprise may be evidence of inflation rather than growth in manufacturing activity.
The Commerce Department reported Wednesday that the dollar value of residential spending rose to a seasonally adjusted annualized rate of $1,568.83 billion.
The prior month was revised up to $1,563.46 billion from the preliminary estimate of $1,552.20 billion. So July’s figure was 0.3 percent above the revised figure and one percent above the unrevised figure.
Analysts surveyed by Dow Jones had expected construction spending to climb 0.2 percent above the preliminary estimate, so the July number represents a substantial gain in construction spending.
May was also revised up to $1,563.46 billion from $1,551.21 billion, which means that what had appeared to be a gain of one-tenth of a percentage point in the June report is now a