Builders up spending by 0.7 pct; signs of pressure emerge
WASHINGTON — U.S. builders pushed construction spending up 0.7 per cent in December to a record high, though it was the weakest performance since they began to emerge from the financial crisis.
The upward spending marks the fifth consecutive monthly gain, with all major sectors showing modest increases.
The December increase followed a 0.6 per cent rise in November, the Commerce Department reported Thursday. It closed out a year in which construction spending rose 3.8 per cent. While it was the sixth consecutive annual increase, it was the most meagre since a decline in 2011, when companies were breaking free from recession.
For December, spending on housing projects rose 0.5 per cent while nonresidential construction was up a stronger 1.1 per cent. Spending on government projects rose 0.3 per cent as strength at the federal level offset a drop in state and local construction.