Text 2830, 83 rader
Skriven 2004-10-01 19:00:00 av Jeff Binkley (1:226/600)
Ärende: Economy
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More bad news for the democrats...

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http://apnews.myway.com/article/20041001/D85EM9HG0.html

Construction Spending Hits All-Time High
 
 
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Oct 1, 10:08 AM (ET)

By JEANNINE AVERSA
 

WASHINGTON (AP) - Construction spending surged in August to the highest 
level on record, fresh evidence that the housing market is helping move 
the economy ahead.

The Commerce Department reported Friday that the value of buildings put 
in place clocked in at a seasonally adjusted annual rate of $1.02 
trillion, a record high. That represented a 0.8 percent increase in 
August from July's level.

The strength exhibited in August in part reflected a strong showing in 
residential projects by private builders, which hit a record high.

The 0.8 percent advance was twice as big as the 0.4 percent increase the 
economists were forecasting. In more encouraging news, July's 
performance turned out to be even stronger than previously estimated. 
Revised figures showed that construction spending jumped by 1.1 percent 
in July from the previous month.

 
(AP) A manager at the QT gas station changes the prices on gasoline at 
the Gravois station in St. Louis...
Full Image 
 
 
The report reinforced the view of Federal Reserve Chairman Alan 
Greenspan and his colleagues that the economy has regained some traction 
after hitting a soft patch in the late spring and early summer.

Citing signs of some economic improvements, the Federal Reserve last 
month boosted short-term interest rates for a third time this year. That 
pushed up a key rate to 1.75 percent, still low by historical standards. 
The Fed wants to make sure that inflation doesn't become a problem for 
the economy.

The health of the economy and the availability of jobs are frequent 
sparring issues on the presidential campaign trail. President Bush says 
his tax cuts have helped the economy rebound and have spurred job 
creation. His Democratic opponent, John Kerry, says the tax cuts have 
benefited mainly the wealthy, squeezed the middle class and plunged the 
government's balance sheets deeper into red ink.

Although growth in the nation's payrolls picked up in August, the 
economy is still down 913,000 jobs since Bush took office in January 
2001.

The housing market has been a key contributor to economic growth. Home 
sales are expected to hit record highs this year, aided by relatively 
low mortgage rates. That has kept home building brisk.

In August, residential projects by private builders rose by 1.7 percent 
from the previous month to a record high of $550.6 billion, on an 
annualized basis.

Commercial construction by private builders increased 0.8 percent in 
August to an annual rate of $227 billion, the highest level since June 
2002. That's encouraging news for the commercial sector which has been 
hard hit by the 2001 recession and has struggled to get back on solid 
footing.

Government spending on big public works projects, meanwhile, dropped by 
1 percent in August from the previous month to an annual rate of $237.6 
billion. The weakness in part reflected cuts in spending on schools and 
highways and streets.


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