4 Stocks to Buy on a Rise in September Construction Spending

Spending on construction projects, rising until a few months back, has been declining. The homebuilding industry has been the biggest casualty of the Feds aggressive rate hike policy, which has seen a steady decline in spending on construction projects.

However, construction spending rose unexpectedly in September, indicating that inflation might be easing. The rise was primarily driven by spending on non-residential structures like mining and oil well drilling and government projects. Given this scenario, stocks like EMCOR Group, Inc. EME, Granite Construction Incorporated GVA, James Hardie Industries plc JHX and United Rentals, Inc. URI are likely to benefit in the near term.

Construction Spending Increases Despite Challenges

The U.S. Census Bureau said on Nov 1 that spending on construction projects rose 0.2% to a seasonally adjusted annual rate of $1,811.1 billion in September after declining 0.6% in August. Economists had expected construction spending to decline 0.5%.