U.S. 2018 Construction Spending Rises by Least in Seven Years
(Bloomberg) -- U.S. construction spending posted the smallest
annual increase since 2011 as homebuilding slowed amid higher
borrowing costs and a glut of apartments in some areas.
The value of construction put in place increased 4.1 percent in
2018 to $1.3 trillion, according to a Commerce Department report
Monday that was delayed by the government shutdown. For
December, spending declined 0.6 percent from the prior month,
missing forecasts for a 0.1 percent gain.
The full-year figure reflected a 3.3 percent increase in private
residential construction that was the smallest advance since
2011. The category had posted gains of more than 10 percent for
six straight years. Within the sector, single-family building
was up 5.2 percent while multifamily housing rose 0.7 percent.
Other areas of weakness in construction spending for 2018
included private manufacturing, which fell 1.7 percent. On the
positive side, state and local outlays jumped 7.1 percent, the
most since 2007.
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