Construction Spending Falls More Than Expected

Washington, DC, February 1, 2008—U.S. construction spending fell 1.1 percent in December, led by home construction as the housing market continued its slide.

The December decline to $1.140 trillion annual rate was its lowest since $1.133 trillion in July 2005.

The November rate was also revised downward to a 0.4 percent decline.

Home construction fell 2.8 percent in December to a rate of $462.0 billion, the 22nd consecutive monthly decrease.

Private construction declined 1 percent while public construction fell 1.5 percent. The only major increase was in private nonresidential construction, rising by 1.3 percent.