The US Department of Commerce reported that the country’s construction spending in February reached the largest amount in nearly 11 years.
Thanks to more homes, schools, and highways being built, construction spending increased 0.8% in the said month to the highest level since April 2006. As it has been pointed out, builders are constructing more homes in a rapid pace in response to strong demand, and this accelerated activity could boost the country’s economy this year. According to the department’s report, local and state governments spent 0.9% more on construction.
Before this milestone was achieved, the country experienced two months of declines, where the government cut spending for around 9% from last year. Now, President Donald Trump has promised to reverse that trend by increasing construction spending by $1 trillion over the next 10 years.
Meanwhile, the construction of commercial infrastructures, such as office buildings, hotels, and medical facilities has decreased 0.3% in February. However, the whole commercial construction sector has seen an increase of 7.5% in the past year.
In the fourth quarter of 2016, the country’s economy grew at a 2.1% annual rate, with housing accounting for about a third of a percentage point.