Construction Spending Rises in November
Construction spending in the U.S. saw a rise of 0.4% in November, reaching a total of $2.04 trillion.
Construction spending in the U.S. saw a rise of 0.4% in November, reaching a total of $2.04 trillion, according to the Commerce Department's report released on Tuesday.
Despite falling short of Wall Street's expectations, economists anticipated a 0.6% increase in construction spending for November. However, it is important to note that construction spending has been consistently increasing every month throughout 2023 up until November.
Construction spending is a key indicator of economic activity as it reflects the investments made by both the government and private companies in various projects, including housing and highways.
The government also revised the initial read of a 0.6% increase in construction spending in October to a higher figure of 1.2%.
Over the past year, construction spending has seen a significant increase of 11.3%.
In terms of residential real estate, private residential construction experienced a growth of 1.1% in November. Interestingly, single-family construction saw a notable rise of 2.9%, while multi-family construction witnessed a slight increase of 0.1%.
On the other hand, spending on public residential construction declined by 2.2%.
It's worth mentioning that stocks including SPX DJIA were experiencing a downturn during early trading on Tuesday. Additionally, the 10-year Treasury note BX:TMUBMUSD10Y remained below 4%.