Ahead of the Bell: US construction spending

US construction spending expected to show further gain in August

Associated Press
US construction spending up 0.7 percent in August

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In this Sept. 15, 2015 photo, an iron worker works on the new Comcast Innovation and Technology Center under construction, in Philadelphia. The Commerce Department reports on U.S. construction spending in August on Thursday, Oct. 1. (AP Photo/Matt Rourke)

WASHINGTON (AP) -- The Commerce Department reports on August U.S. construction spending at 10 a.m. Eastern Thursday.

CONSTRUCTION UP: Economists believe spending rose 0.5 percent, according to a survey of by data firm FactSet.

SOLID GAINS: In July, construction rose 0.7 percent to the highest level in more than seven years. That increase was boosted by gains in the building of houses, factories and power plants.

Gains in construction have helped to support economic growth this year. The overall economy, as measured by the gross domestic product, expanded at a solid annual rate of 3.9 percent in the April-June quarter.

Business spending on structures grew at a 6.2 percent rate during the spring while construction of homes was growing at an even faster 9.3 percent rate after gains of 10 percent over the previous six months.

Economists are forecasting further gains in housing for the rest of this year.

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