Recent real estate records from the Department of Commerce showed the level of residential construction spending rose during September.
The total level of construction spending increased to $851.6 billion, which was 0.6 percent higher than the August rate of $846.2 billion. New residential construction reached a rate of $285.9 billion in September, which was 2.8 percent higher than the previous month's rate of $278 billion, the report explained. Additionally, the total level of private construction improved to $580.5 billion, more than 1 percent higher than August's level of $572.8 billion.
While the level rose, some experts felt construction isn't where it should be.
"The fiscal cliff certainly seems to have affected business capital spending of all kinds, including construction," Bill Cheney, chief economist for John Hancock Financial Services, told Bloomberg. "I assume we’re going to see a huge boost in construction spending as we start rebuilding."
Despite the slow growth in residential construction, the aforementioned increases in property data may help the booming consumer confidence levels. According to The Conference Board, the Consumer Confidence Index rose to 72.2 during October from the previous month's level of 68.4.