Washington, DC, January 3, 2006--Construction spending increased 0.2% in November, the smallest gain since June, the Commerce Department estimated Tuesday.
Spending on private nonresidential projects paced the gains, increasing 0.6%. Private residential spending was unchanged, the weakest since June. Spending by the public sector increased 0.3%.
The figures are seasonally adjusted, but are not adjusted for price changes. The monthly data are subject to large sampling errors and other statistical distortions.
The 0.2% increase in total construction spending was weaker than the 1% gain expected by economists.
Spending in October was revised higher to a 0.8% increase from 0.7% previously.
Construction outlays have increased 7.8% in the past 12 months, with residential spending up 9.5%. Private-sector nonresidential outlays are up just 3.2% year-over-year, reflecting continued weak investment in structures. Public outlays are up 7.8% in the past year.
With the private sector, spending on commercial projects rose 2.7% in November, while spending on offices increased 2.4%. Spending on manufacturing projects fell 2.8% while spending on power facilities dropped 2.3%, likely a payback from hurricane repairs in September and October.
In the past year, spending on commercial space is up 10.1%. Spending on private health care facilities has increased 10.2% in the past 12 months.
In the public sector, spending on highways and streets increased 1.6% in November, while spending on schools increased 1.3%. Spending on sewers grew 9.2% in November.
In the past year, public spending on water, sewers, public safety and schools has risen by double-digits percentages.
