US economic outlook has received a major boost from the recent data released by the Commerce Department which stated that construction spending has scaled a more than eight-year high in January.
In the report, the department said the spending on construction surged 1.5 per cent to $1.14 trillion, the highest level since October 2007, as both private and public outlays rose.
That followed an upwardly revised 0.6 per cent increase in December, previously reported as a 0.1 per cent gain.
The strong construction spending report prompted economists at Barclays to raise their first-quarter gross domestic product growth estimate by three-tenths of a percentage point to a 2.4 per cent annual rate.
The economy grew at a one per cent rate in the fourth quarter.
"The very good construction report for January is further proof that concerns about recession in the US are far overblown," said Gus Faucher, deputy chief economist at PNC Financial in Pittsburgh.-Reuters