Construction Spending Flat, but Home Building Up

Washington, DC, Dec. 1, 2009--U.S. construction spending was flat in October despite the biggest surge in homebuilding in more than a decade, the Commerce Department said on Tuesday.

The report also sharply revised the prior month's data.

Instead of rising by 0.8 percent as it said a month ago, the Commerce Department now says September construction spending slumped by 1.6 percent, its sharpest monthly fall since a 2.8 percent decline last January.

The department said the last month in which total construction spending rose was in April, when it was up 0.5 percent.

Economists  had forecast October construction spending would decline by 0.5 percent.

Total construction for the month was $910.8 billion. Spending on private housing projects increased 4.4%, the biggest gain since March 1998. Spending on nonresidential private projects fell 2.5%.