US construction spending dips 0.3 per cent in November, first decline in 8 months

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In this Oct. 11, 2012 photo, an ironworker traverses a beam on a new courthouse under construction in Philadelphia. Construction spending dipped 0.3 percent in November compared with October, when spending had risen a revised 0.7 percent, the Commerce Department said Wednesday, Jan. 2, 2013. (AP Photo/Matt Rourke)

WASHINGTON – U.S. builders spent less on construction projects in November, the first decline in eight months, as activity was held back by a big drop in spending on federal projects.

The Commerce Department says construction spending dipped 0.3 per cent in November compared with October, when spending had risen a revised 0.7 per cent. It was the first drop since March.

The November decline left total spending at a seasonally adjusted annual rate of $866 billion, 16.1 per cent above a 12-year low hit in February 2011. Even with the gain, the level of spending remained only about half of what’s considered healthy.

In November, spending on housing increased 0.4 per cent, but spending on federal building projects fell 5.5 per cent. Spending on nonresidential projects such as office buildings and shopping malls dropped 0.7 per cent.

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