Washington, DC, January 31, 2007--Construction spending dropped 0.4% to $1.18 billion in December, with spending on private residential construction projects falling for the ninth consecutive month, the Commerce Department reported Wednesday.
The pace of spending was lower than the 0.1% increase expected by economists. However, November's outlays were revised higher to a 0.1% gain from a 0.2% decline previously.
For all of 2006, construction outlays were up 4.8%, the smallest gain since 2002. Compared with December 2005, however, outlays in December 2006 were down 1.4%. The figures are not adjusted for price changes.
In December, spending on private projects fell 0.8%, the ninth consecutive decline. Outlays were at their lowest level since July 2005 at $896.8 million.
Within the private sphere, spending on housing dropped 1.6% in December, also the ninth consecutive drop. Outlays were at their lowest level since September 2004 at $582.3 million. Residential spending fell 12.3% from December to December.
Private nonresidential spending rose 0.9% to a record level of $314.5 million. Private nonresidential spending rose 12.7% from December to December, led by big increases in lodging, offices and health-care.
Spending on private commercial projects rose 1% in December. Spending on office projects increased 0.8%. Spending on private education projects rose 1.7%.
Public construction outlays rose 0.6% in December to a record $280.9 million, led by a 12% gain in power projects. Spending on highways fell 1.1%. Spending on schools rose 1.8%.
