Construction Spending Up for Third Straight Month
January 3, 2011
According to the Associated Press, builders began work on more homes and the government boosted its investment in federal construction projects in November, marking a third straight monthly increase after a dismal summer.
Construction spending increased 0.4 percent in November, the Commerce Department said Monday. Still, building activity is only 2.3 percent higher than in August, when it had fallen to the lowest level in a decade.
The industry has struggled since 2006 when the housing market went bust and helped trigger the worst recession since the 1930s. It also cut into demand for commercial projects such as office buildings and shopping centers.
Total spending increased to $810.2 billion in November at a seasonally adjusted annual rate. The strength in November came from a 0.7 percent rise in private residential construction which increased to $235.7 billion at an annual rate. That marked the third straight gain. November was the first time in seven months that housing construction, excluding renovations projects, rose.
To read the full AP story, click here.