US construction spending beats expectation on robust homebuilding


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US construction spending beats expectation on robust homebuilding

On Friday, the 1st of November 2019, the US Commerce Department had revealed a set of mixed economic data with a robust job data adding a shimmering ray of hope to limit exposure to a steep global-scale slowdown alongside a downbeat manufacturing PMI (Purchasing Managers’ Index) casting further cloudiness over a slowing US economy amid a waning consumer spending, while US Construction spending data released on GMT 14.00, had orchaestrated a better-than-anticipated portrait as homebuilding investment surged to its highest level in more than 38 weeks in September following a sharp decline in mortgage rate.

Besides, according to US Commerce Department report revealed on Friday (October 14th), GMT 14.00, US Construction spending rose by 0.5 per cent from an earlier figure of -0.3 per cent, beating an analysts’ estimate of a rise of 0.2 per cent, as a multi-year low mortgage rate following three interest rate cuts this year had finally buoyed up confidence among US homebuilders despite a dithered wage growth and a steeply declining weekly working hours submissively aiding to maintain a fifty-year low unemployment rate of 3.6 per cent in the United States.

On top of that, investment in private constructions rose 0.2 per cent last month after declining more than 0.3 per cent in August, while spending in public construction projects soared 1.5 per cent in September after falling 0.4 per cent in August.