Suryaa Business Desk: Construction activity in the United States has slowed unexpectedly. Official statistics indicate that US construction spending declined by 1.9 percent in September, contrasting with the 2 percent growth recorded in August. Analysts note this is the largest single-month drop since April 2020.
Private sector construction activity contracted by 2.4 percent, with the residential sector experiencing a 5.5 percent decrease. Analysts attribute this to high interest rates on home loans and elevated costs for construction materials. Conversely, the private non-residential sector saw a 1.1 percent increase. Meanwhile, public sector construction spending decreased slightly by 0.1 percent. These developments indicate that domestic economic conditions and increased interest rates are impacting the real estate and construction sectors.