U.S. Construction Spending Hits 10-Year High

(CN) – Spending on construction projects across the United State climbed for the second straight month in November — pushing activity in the sector to the highest level in more than a decade.

The Commerce Department said Tuesday that construction spending  rose 0.9 percent in November after a 0.6 percent increase in October.

The government said the increase reflects solid gains in home construction, nonresidential building and government construction activity.

The pushed total construction to a seasonally adjusted annual rate of $1.18 trillion. The last time the rate was that high was in April 2006, at the height of the housing boom.

For November, the 1 percent rise in residential construction reflected a 1.8 percent rise in single-family construction which offset a 2.7 percent drop in the smaller and more volatile apartment construction sector.

The 1 percent rise in nonresidential construction followed a 1.6 percent decline in October.

The gains in November were led by 7 percent jump in hotel and motel construction.

The 0.8 percent advance in government projects reflected a 3.1 percent rise in spending at the federal level and a 0.6 percent increase in construction by state and local governments.

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