Construction Spending in November Jumps 1.2%
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A report from the Commerce Department Tuesday indicated construction spending in the U.S. during November rose 1.2 percent, topping the Street’s consensus of a 0.5 percent increase. The data marks an increase in spending for three out of the last four months in 2011.
The reading for October was revised rather sharply lower from a 0.8 percent gain to a decline of 0.2 percent.
The strong November upside was driven by a 2 percent increase in homebuilding outlays, which includes a 2.6 percent increase in home improvement speading. A 1 percent increase to $522 billion in private construction spending from October represents the largest gain seen since December of 2009.
Federal construction outlays rose 5.3 percent as spending on public construction as a whole increased 1.7 percent during November. Also notably, outlays by state and local agencies were at the highest levels since January of 2011.
Construction began on more homes in the month of November than any of the 19 previous months: housing starts came in at an annual rate of 685,000.
The new figures are promising signs for investors who believe the housing market will see a strong turnaround. The optimism is evident in the market Tuesday as the Dow, Nasdaq and S&P 500 are each up about 1.8 percent.
The reading for October was revised rather sharply lower from a 0.8 percent gain to a decline of 0.2 percent.
The strong November upside was driven by a 2 percent increase in homebuilding outlays, which includes a 2.6 percent increase in home improvement speading. A 1 percent increase to $522 billion in private construction spending from October represents the largest gain seen since December of 2009.
Federal construction outlays rose 5.3 percent as spending on public construction as a whole increased 1.7 percent during November. Also notably, outlays by state and local agencies were at the highest levels since January of 2011.
Construction began on more homes in the month of November than any of the 19 previous months: housing starts came in at an annual rate of 685,000.
The new figures are promising signs for investors who believe the housing market will see a strong turnaround. The optimism is evident in the market Tuesday as the Dow, Nasdaq and S&P 500 are each up about 1.8 percent.
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