Construction spending in the U.S. rose in February, paced by the highest level of home building in more than four years.
Outlays climbed 1.2 percent to an $885.1 billion annual rate, following a 2.1 percent decrease in January, the Commerce Department reported today in Washington. The median forecast of 41 economists surveyed by Bloomberg called for a 1 percent rise.
Near record-low borrowing costs and an improved outlook for jobs are lifting demand for residential real estate, giving a boost to homebuilders including KB Home. Faster hiring would ensure a more sustained rebound in the industry, allowing for bigger gains in construction spending.
“Housing, growth-wise, will be the best-growing sector of the major sectors in 2013, hands down.” Ken Mayland, president of ClearView Economics in Pepper Pike, Ohio, said before the report. “I’m totally optimistic about housing’s recovery. There’s an inevitability that it has to go higher.”