January 18th, 2021

US construction spending increases solid 0.9% in November


By Martin Crutsinger, The Associated Press on January 4, 2021.

Construction workers clear out debris from the demolition of the original building at TSX Broadway under construction, Thursday, Oct. 29, 2020, in New York's, Times Square. The 46-story mixed-use property will house 75,000 square feet of retail space, a a 4,000-square-foot performance venue including an outdoor stage, an outdoor food and beverage terrace and a luxury hotel. U.S. construction spending rose 0.3% in September, the fourth straight monthly gain after a coronavirus-caused spring swoon. (AP Photo/Mary Altaffer)

WASHINGTON – Spending on U.S. construction projects increased 0.9% in November as strength in home building offset weakness in other parts of the construction industry.

The November gain followed a bigger 1.6% rise in October and left construction spending up 4.4% through the first 11 months of 2020 compared to the same period in 2019, according to the Commerce Department.

For November, spending on residential construction rose 2.7% with single-family construction surging 5.1 per cent while apartment construction was flat, according to the new data released Monday. Record low mortgage rates have spurred strong demand for housing even as a global pandemic resulted in widespread lock downs for other parts of the economy.

Spending on non-residential projects fell 0.8% with spending for office buildings dropping a sharp 8.1%. Spending on government projects dipped 0.2% in November. Many state and local governments are facing severe budget constraints as a sharp recession has cut into tax revenues.

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