Construction spending inches up in November

Industrial Distribution staff -- Industrial Distribution, 1/2/2008 7:57:00 AM

Construction spending in the United States in November rose slightly—and unexpectedly—by 0.1 percent to $1.165 trillion, according to the U.S. Census Bureau (pdf).

The bureau credited work on schools, public facilities and highways for the increase, which came on the heels of a 0.4 percent slide in October.

But the residential construction crisis continued as spending on private homebuilding fell by the most in more than five years, prompting economists to predict a delay in that market’s recovery until mid-2008, according to the Bloomberg news service.

“The report was troubling because there were signs of a deepening retrenchment in outlays for single-family homes,” RBS Greenwich Capital economist Omair Sharif told the news service. “Builders will likely continue to scale back on groundbreaking activity in the coming months, making the outlook for spending on single-family homes abysmal.”

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