UPDATE 1-U.S. construction spending surges in April

(Adds details, background)

WASHINGTON, June 1 (BestGrowthStock) – U.S. construction spending
rose unexpectedly in April, recording its largest monthly
increase in nearly 10 years, according to a government report
on Tuesday.

The Commerce Department said construction spending rose 2.7
percent, the biggest advance since August 2000, to an annual
rate of $869.1 billion. March’s increase was revised up to 0.4
percent from a 0.2 percent gain.

Economists surveyed by Reuters forecast that construction
spending would be unchanged in April.

Investment in private construction surged 2.9 percent, the
largest increase since July 2004, to $565.8 billion after
declining 0.5 percent in March.

It was the first time since October that spending on
private construction increased. Spending was lifted by a 4.4
percent rise in private home building, which was the biggest
gain in six months.

Home construction activity picked up in recent months in
response to a popular tax credit, which required prospective
home owners to sign contracts by April 30 and close them by
June 30. A lull is expected in the months ahead.

Private nonresidential spending rose 1.7 percent in April,
the largest increase since September 2008, after falling 0.9
percent the prior month.

Public construction spending increased 2.4 percent in April,
the biggest gain in 14 months, building on the prior month’s
2.0 percent increase.

State and local government investment in construction
projects increased 2.3 percent in April, the largest increase
in just over a year, after rising 2.1 percent the previous
month.

Federal construction advanced 2.9 percent following a 0.4
percent gain in March. Federal spending on construction
projects has now increased for four months.

Stock Trading
(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

UPDATE 1-U.S. construction spending surges in April