US construction spending hits highest level in seven years

US construction spending hit its highest level since May 2008 in July, figures released on Tuesday showed.

According to the Commerce Department, outlays for construction projects rose 0.7% in July to a seasonally adjusted rate of $1.08trn, the highest level since May 2008 and in line with expectations.

Meanwhile, June’s gain was revised upwardly to show a 0.7% jump compared to the 0.1% increase that had originally been reported.

Private construction spending grew 1.3% in July, boosted by a 1.1% gain in residential projects, while non-residential projects climbed 1.5%.

The report added public construction spending rose 1% in the period.