Construction Spending in U.S. Rises More Than Forecast

Construction spending in the U.S. rose in November for a third time in four months, indicating the industry helped boost growth at the end of 2011. Building outlays increased (CNSTTMOM) 1.2 percent. The October reading was revised down to show a 0.2 percent drop from a previously projected 0.8 percent increase, showing the initial data are susceptible to swings in direction. Recent gains in the housing market, spurred in part by mortgage rates near record lows, are helping the construction industry recover from the 18-month recession that ended in June 2009. Public expenditures also climbed during the month, a sign that budget constraints may be easing. Private construction spending climbed 1 percent in November from the prior month to $522 billion, the highest level since December 2009. Homebuilding outlays increased 2 percent, including a 2.6 percent gain in home improvement. Expenditures on single-family and multifamily housing also improved.