Outlays for construction projects rose 1% in December at a seasonally adjusted annual rate of $1.49 trillion, the Commerce Department reported Monday. Economists polled by Wall Street Journal had expected a 0.8% increase.
Spending in November was revised to a 1.1% gain from the prior estimate of a 0.9% rise.
In keeping with recent trends, residential construction in
December was much stronger than the non-residential and public sectors.
Residential construction rose 3.1% in December, the seventh straight monthly gain in the sector. Residential construction is above pre-pandemic levels.
Spending on non-residential housing fell 1.7% in December.
Spending on public construction projects rose 0.5%. With government budgets tight due to the pandemic, economists don’t see much spending on the horizon unless Washington steps in.