Please ensure Javascript is enabled for purposes of website accessibility

Construction Spending Edges up 0.1% for December

By Justin Loiseau - Feb 3, 2014 at 1:41PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Residential spending pushes ahead; public construction tapers off.

Construction spending in the U.S. edged up 0.1% in December to a seasonally adjusted annual rate of $930.5 billion, according to a Commerce Department report (link opens as PDF) released today. 

After increasing a revised 0.8% in November to a near five-year high, construction spending had been expected to flatline for December. 

Source: Commerce Department..

Private construction led the upward push, bumping up 1%. Residential construction added on 2.6%, more than making up for nonresidential construction's slight 0.7% slump. Spending on single-family homes rose 3.4% in December and 21.6% from a year earlier. More than two-thirds of the residential construction market comes from single-family homes. Construction of apartments and condominiums was up 0.5% in December and up 27.3% from December 2012.

Despite increases in residential spending, home sales might be in for tougher times in 2014, according to a National Association of Realtors report and a Commerce Department report from last week citing slower sales for December.

Public construction slimmed its piece of the spending pie, dropping 2.3% for December. Educational spending took the largest dip, down 7.2%.

For all of 2013, overall construction spending was up 4.8% compared to 2012..

-- Material from The Associated Press was used in this report.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
402%
 
S&P 500 Returns
129%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/18/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.