Reuters raises US construction spending on construction in November

WASHINGTON (Reuters) – US construction spending rose in November due to high profits in single-family home construction, but spending on public projects was weak.

The Commerce Department said Monday that construction spending rose 0.4% after similar progress in October.

Economists surveyed by Reuters predicted that construction spending would rise by 0.6%. Construction spending rose by 9.3% in November year-on-year.

Expenditure on private construction projects rose by 0.6% in November. Expenditure on housing construction rose by 0.9%.

Expenditure on single-family housing rose by 1.2%, while expenditure on multi-family housing projects fell by 0.3%.

The shortage of housing construction remains limited, which raises the prices of building materials. Housing investment was contracted in the second quarter in a row in the third quarter as a result of housing improvements and reductions in single-family housing.

Investment in private structures such as the drilling of gas and oil wells rose by 0.1% in November. Expenditure on structures fell in the second consecutive quarter in the July-September period, driven by trade and health structures.

Expenditure on public construction projects fell by 0.2% in November. Expenditure on state and local government construction projects fell by 0.2%, while federal government spending fell by 0.4%.