U.S. construction spending rose for a
sixth straight month in November to an all-time high and builders
started work on houses at a record rate, suggesting the economy
may have grown faster than expected in the fourth quarter.
The 1.2 percent increase to a $934.5 billion annual rate
followed a revised 1.1 percent gain in October, the Commerce
Department said in Washington. Residential construction, which
accounts for more than half the total, rose 1.9 percent.
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Mortgage rates hovering close to a record low have helped
spur demand for housing, which accounted for about a percentage
point of the 8.2 percent increase in third quarter gross domestic
product. Construction spending on offices and other commercial
buildings also increased in November.
“Construction spending will boost GDP in the fourth quarter
and it should continue to buoy growth going forward,” said Maria
Forres, an economist at Griffin Kubik Stephens & Thompson in
Chicago, which forecast a 1.1 percent rise for November.
Bloomberg News
