Private construction spending at highest level in nearly 2 years

Spending on construction jumped in November to $807.1 billion, up 1.2% from October after swinging unevenly for the last few months, according to new data from the Commerce Department.

Building outlays were up 0.5% compared to the $803 billion spent a year earlier in November 2010.

Private construction led the charge with $522.3 billion spent – the most since December 2009 and a 1% increase from October. Compared to November 2010, spending was up 4%.

Residential building expenditures rose 2% month to month, though nonresidential private spending stayed roughly the same.

More Americans in a year and a half signed contracts in November to buy homes, the National Assn. of Realtors said last week. Housing starts were up 9.3% that month from October, according to the Commerce Department, even as home prices continue to tumble in the nation’s major cities.

Though public spending was up 1.7% compared to October, the $284.9-billion pot was 5.3% smaller than the year-earlier amount. Government payments for residential, office and transportation building all saw slips from 2010.

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