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Construction Spending Climbs 0.4% in December

blueprintsConstruction spending advanced slightly from November to December, aided by increases in outlays for residential projects.

The Commerce Department said Monday that construction spending rose 0.4 percent month-over-month throughout December to a seasonally adjusted annual rate of $982.1 billion. November's spending rate was revised slightly upward to a seasonally adjusted $978.6 billion, still reflecting a decline from the month prior.

For the entire year, the Commerce Department estimates spending on construction came to a total of $961.4 billion, an increase of 5.6 percent over 2013.

Residential construction spending in December turned in a mixed performance, rising 0.4 percent over the previous month to a rate of $355.0 billion but falling short of year-ago levels by 3.9 percent.

In the private sector, spending on construction was estimated at a seasonally adjusted annual rate of $698.6 billion, a 0.1 percent improvement above November's revised estimate. Private residential construction gained 0.3 percent month-to-month to climb to an annualized rate of $348.4 billion.

Spending was up all around for private residential projects, led by a 1.2 percent month-over-month increase in spending on single-family homes to a rate of $202.5 billion. Spending for new multifamily projects picked up 0.3 percent to a rate of $46.6 billion.

In the public sector, residential outlays came to an annualized $5.5 billion in December, up 2.3 percent from November.

About Author: Tory Barringer

Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington's student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News' sister publication, MReport, which focuses on mortgage banking news.
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