US construction spending increases

Source: Xinhua | 2017-01-04

US construction spending rose more than expected in November, reaching its highest level in 10 1/2 years, which could provide a lift to fourth-quarter economic growth.

The Commerce Department said yesterday that construction spending rose 0.9 percent to US$1.18 trillion, the highest level since April 2006. It was boosted by gains in both private and public sector investment.

Construction spending in October was revised up to show a 0.6 percent rise instead of the previously reported 0.5 percent increase. Construction spending was up 4.1 percent from a year ago in November.

Economists polled by Reuters had forecast construction spending rising 0.6 percent in November. November's better-than-expected gain and October's upward revision to construction spending could prompt economists to raise their gross domestic product estimates for the fourth quarter.

Spending on private construction projects rose 1 percent in November to its highest level since July 2006 as single-family home building, as well as home renovations, increased.

Investment in private nonresidential structures — which include factories, hospitals and roads — rose 0.9 percent after falling 1.5 percent the prior month.

Public construction spending gained 0.8 percent in November to the highest level since March.