Construction Spending Rose in December

Washington, DC, Feb. 1, 2012 -- Construction spending rose in December at the fastest pace in four months, according to the Commerce Department.

Spending increased 1.5%, the biggest gain since August. Economists were expecting a 0.5% rise.

The Commerce Department revised the November reading down to a 0.4% gain from a previously estimated increase of 1.2%.

Construction spending declined 2% in December from the same time in 2010.

Private construction spending rose 2.1% in December from the prior month. The increase brought the value up to $529.7 billion at an annual rate, the highest level since December 2009.

Homebuilding spending increased 0.8%, including a 0.2% increase in home improvement. Non-residential building rose 3.3%.

Spending on public construction increased 0.5%.