Construction Spending Rises Sharply

Construction spending rose a sharp 0.8 percent in November though year-on-year growth remained no more than moderate at 3.4 percent.

Residential construction had been weakening but, getting a lift from multi-units, picked up a sharp 3.5 percent in November though annual growth at only 0.8 percent is especially modest.

Private non-residential construction, pulled down by November declines in both commercial and office building, fell 1.2 percent with yearly growth here at 4.2 percent.

Public spending has been the special strength of the construction sector with transportation at a 7.6 percent yearly growth rate and educational building at 8.5 percent. Highways and streets are up 5.8 percent on the year.

The gains in this report underscore the surge in construction payrolls in this morning's employment data, and though the residential sector is limping along non-residential building, especially on the public side, is solid.