Construction Spending Rises in November

Construction spending rose in November for the sixth straight month, as building of single-family homes and public works projects continued to grow, the Commerce Department said. Spending rose 0.9% to a seasonally adjusted annual rate of $677.8 billion, exceeding the 0.5% gain forecast by economists surveyed by Reuters. The gain was led by residential housing, especially single-family homes, where spending rose 1.8%. Spending on multiple-unit dwellings eased slightly. Spending declined on most private nonresidential construction projects, such as factories, hotels and hospitals, but spending on construction of office buildings rose 1.7% to a $41.5-billion annual rate, the highest level since March 1989. Government spending on public works projects rose 2.1%.