Spending on US construction projects, a key indicator of economic growth, rose 1.2pc in November after an upwardly revised 1.1pc gain in October, as outlays for homes jumped, the Commerce Department estimated today. Total spending on construction hit a record annual rate of USD934.5bn in the month. Outlays were up 7.4pc in the past year. Economists expected a gain of 0.8pc in November. Most of the gains came from residential projects, with spending up 1.9pc to a USD501.6bn annual rate. Spending on residences was up 14pc in the past year as mortgage rates dipped to 40-year lows.
Spending on business structures rose 0.3pc in November after falling 1.1pc in October. Spending on offices rose 2.5pc while spending on factories fell 1.6pc. "The continued growth in private office construction provides some optimism that the construction sector will at the very least be buffered in coming months by a pickup in commercial construction activity," said Mat Johnson, chief economist for Quantit Group. Total private-sector spending was up 1.2pc in November. Meanwhile, Government spending on construction projects rose 1pc in November, led by a 4.1pc gain in roads. //www.fxcentre.com