Construction spending continued to improve, rising 1.5% in December, its fastest level since August. Spending has now improved for 5 months and is 4.3% above its level one year ago.
Both private and public construction contributed to December’s growth. Private construction recovered in December, growing 2.1% after falling 0.4% in November. The improvement in private construction was led by non-residential construction, which grew 3.3% in December. Residential construction grew as well, but by a more modest 0.8%.
Public construction grew 0.5% in December, down from the 1.7% growth the previous month. The largest contributor to public spending was highway and street construction, which rose 1.8% from the previous month.
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