WASHINGTON Jan 3 U.S. construction spending
rose more than expected in November, reaching its highest level
in 10-1/2 years, which could provide a lift to fourth-quarter
The Commerce Department said on Tuesday that construction
spending increased 0.9 percent to $1.18 trillion, the highest
level since April 2006. It was boosted by gains in both private
and public sector investment
Construction spending in October was revised up to show a
0.6 percent rise instead of the previously reported 0.5 percent
increase. Construction spending was up 4.1 percent from a year
ago in November.
Economists polled by Reuters had forecast construction
spending rising 0.6 percent in November. November's
better-than-expected increase and October's upward revision to
construction spending could prompt economists to raise their
gross domestic product estimates for the fourth quarter.
Spending on private construction projects jumped 1.0 percent
in November to its highest level since July 2006 as
single-family home building, as well as home renovations,
Investment in private nonresidential structures -- which
include factories, hospitals and roads -- rose 0.9 percent after
tumbling 1.5 percent the prior month.
Public construction spending gained 0.8 percent in November
to the highest level since March. It was the fourth straight
month of increases. Outlays on state and local government
construction projects rose 0.6 percent, also gaining for a
fourth consecutive month.
Federal government construction spending surged 3.1 percent
after rising 0.2 percent in October.
(Reporting By Lucia Mutikani; Editing by Andrea Ricci)