Spending on construction falls


WASHINGTON (AP) — Spending on U.S. construction projects fell in November from October because a steep drop in volatile federal projects offset another gain in home building.

Construction spending dipped 0.3 percent in November, the Commerce Department said Wednesday. It was the first decline since March and followed a 0.7 percent increase in October, which was revised lower.

Total spending declined to a seasonally adjusted annual rate of $866 billion. That is 16.1 percent above a 12-year low hit in February 2011. Even with the gain, the level of spending remained only about half of what’s considered healthy.

The November figures were dragged lower by a 5.5 percent decline in spending on federal government projects. Federal spending fluctuates sharply from month to month. In October, it rose 9.7 percent.

Spending on residential construction, however, has steadily increased over the past eight months and rose 0.4 percent in November.

Paul Ashworth, chief U.S. economist for Capital Economics, said the decline in construction spending was “nothing too much to worry about.”

“This is a volatile series month to month,” Ashworth said. “The recent surge in housing starts suggests that residential construction spending will expand at a fairly rapid pace this year, particularly when Hurricane Sandy rebuilding is added in.”

Spending on commercial projects dropped 0.7 percent. Spending on office buildings, hotels and shopping centers declined. Overall government spending dipped 0.4 percent.


Reader Comments ...


Next Up in Business

Chipotle food issues: Does your local restaurant have violations?
Chipotle food issues: Does your local restaurant have violations?

Chipotle’s stock has taken a hit this week following foodborne illness issues at a restaurant in Virginia and a report of rodents scurrying around one of their restaurants in Texas. Chipotle executives told Business Insider that the chain temporarily closed a restaurant in Sterling, Va., after a small number of customers reported symptoms like...
Air Force awards big contract to UDRI
Air Force awards big contract to UDRI

The University of Dayton Research Institute has received a seven-year, $43 million Air Force contract to develop nonmetal materials for airplanes, spacecraft and ground vehicles. Researchers at UDRI’s campus and at the Air Force Research Laboratory at Wright-Patterson Air Force Base will investigate adhesives, sealants, elastomers, textiles,...
Bacon cravings push pork prices higher
Bacon cravings push pork prices higher

Your love of bacon is causing pork-belly prices to reach record highs. As more and more people reach for a pack of bacon at the grocery store, pig farmers are struggling to keep up the demand, according to a report from the Wall Street Journal. Pork-belly, the part of the hog used to make bacon, have risen around 80 percent in 2017. Americans bought...
Ohio unemployment rate ticks up
Ohio unemployment rate ticks up

Ohio’s unemployment rate rose slightly in June, back up to 5 percent from 4.9 percent in May. The number of unemployed in the state has gradually risen by about 10,000 people in the past year, even as the state added 56,800 jobs from June 2016 to June 2017. Non-agricultural wage and salary employment increased 11,500 over the month, to 5,528...
NASCAR’s Petty helps open Spectrum
NASCAR’s Petty helps open Spectrum

Although the Spectrum Brands Global Auto Care center in Dayton has been preparing, packaging and shipping products for months, it got an official opening Thursday, with a little help from some friends — including a NASCAR legend. Richard Petty has been associated with STP gas and oil treatment products for some 46 years. “I’ve followed...
More Stories