U.S. Construction Spending Falls Less Than Expected

Washington, D.C. (AHN) - Construction spending in the United States contracted less than anticipated in November as the number of commercial and government projects increased while residential real estate projects dwindled, according to a report released Monday.

The U.S. Census Bureau of the Department of Commerce announced today that construction spending during November was down by 0.6 percent at a seasonally adjusted annual rate of $1,078.4 billion, from the revised October 0.4 percent drop at an estimate rate of $1,085.3 billion.

The market analysts on Wall Street expected the construction spending in the world's largest economy to slump by 1.4 percent in November from the prior month.

The November figure is 3.3 percent below the November 2007 period, when the spending was at an estimate rate of $1,115.3 billion.

The report showed that in the first 11 months of this year, construction spending plunged by as much as 5.3 percent to $998.4 billion, from the $1,054.3 billion of spending recorded for the same period in 2007.

Private residential construction spending fell 4.2 percent to an annual rate of $756.4 billion, which is at the highest level since July, following its decline of 2.1 percent reported the prior month, the Commerce Department said.

In November, non-residential construction, including public projects, increased 1 percent, and was up 9.2 percent from a year earlier in the same period.

In public projects, educational construction was at a seasonally adjusted annual rate of $88.7 billion, 1.3 percent above the revised October estimate of $87.6 billion.

Highway construction was at a seasonally adjusted annual rate of $83.9 billion, 1.3 percent above the revised October estimate of $82.8 billion.