Economic Buzz: US construction spending increase in December

Long-delayed data released by the Commerce Department on Friday showed construction spending the U.S. saw a modest increase in December after dipping in November.

The Commerce Department said construction spending rose by 0.3 percent to an annual rate of $2.169 trillion in December after slipping by 0.2 percent to an annual rate of $2.163 trillion in November.

The increase in total construction spending in December came as growth in spending on private construction more than offset a decrease in spending on public construction.

The report said spending on private construction climbed by 0.5 percent to an annual rate of $1.647 trillion in December after edging down by 0.2 percent to an annual rate of $1.639 trillion in November.

Spending on residential construction led the way higher, jumping by 1.5 percent to an annual rate of $916.2 billion, while spending on non-residential construction slid by 0.7 percent to an annual rate of $730.9 billion.

Meanwhile, the Commerce Department said spending on public construction fell by 0.5 percent to an annual rate of $521.7 billion in December after slipping by 0.2 percent to an annual rate of $524.3 billion in November.

Spending on educational construction decreased by 0.8 percent to an annual rate of $114.0 billion, while spending on highway construction dipped by 0.3 percent to an annual rate of $141.4 billion.

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