US construction spending hits new high

US construction spending boomed more than expected in November to a fresh record high, a government report showed today as persistently…

US construction spending boomed more than expected in November to a fresh record high, a government report showed today as persistently low mortgage interest rates spurred an unprecedented rate of building.

Overall construction spending jumped 1.2 per cent to a seasonally adjusted annual rate of $934.5 billion in the month from an upwardly revised $923.8 billion in October, the Commerce Department said. Analysts polled by Reuters were expecting a 0.5 per cent increase.

It was the fifth month in a row in which total construction spending reached an unprecedented high. Total private construction, total public construction, private residential construction and state and local construction all climbed to fresh records.

Private residential construction spending rose 2 per cent to $495.7 billion from $486.2 billion.