CONSTRUCTION SPENDING UP: Another strong gain in homebuilding pushed U.S. construction spending up in June for a third straight month. The government said construction spending rose 0.4 percent in June following an upwardly revised 1.6 percent gain in May, the biggest one-month increase since December.
THE BACKGROUND: The June advance pushed spending to a seasonally adjusted annual rate of $842.1 billion, up 12.9 percent from a 12-year low hit in February 2011. Still, the level is roughly half of what economists consider to be healthy.
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THE DETAILS: The June performance was led by a 1.3 percent increase in spending on housing, the fifth gain this year. Spending on government building projects was essentially unchanged as spending at the state and local level edged up 0.2 percent while spending at the federal level fell by 1.6 percent.
