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11/2/2015, 4:55 PM (Source: TeleTrader)
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Residential sector heats up construction spending in U.S.

Construction spending in the United States rose to $1,094.2 billion in September, 0.6% more than the revised figure from August, the U.S. Census Bureau said in a report on Monday. The increase came due to intensive activity in the residential sector. The measure is 14.1% higher than a year before, adding some proof of a pickup in economy which the Federal Reserve System is looking for to justify a potential interest rate rise. Still, the main factors needed are the improvement in the labour market and bigger inflation, where the latter is set to drag for a while longer. The markets pushed higher, while the dollar fell slightly and precious metals dropped.

The residential segment saw a 1.8% increase in spending in September, to an estimated $401.32 billion, while the non-residential category dropped 0.1% on the month to $692.84 billion, 12.4% above the reading from the same month of last year. In the first nine months of 2015, spending in the construction sector increased 10.5% compared to the same period of 2014, to $786.6 billion.

The spot dollar index was 0.18% in the red, at 96.75 (4:52 p.m. CET). It lost a quarter of a percent against the euro and the Swiss franc, and gained 0.27% versus New Zealand's currency. Gold was down 0.62% at $1,134.3 per fine ounce, while other precious metals dropped even more; palladium lost 3.66% to $649.87 per ounce (both 4:38 p.m. CET).

 

 

Breaking the News / IT