U.S. construction spending rises, boosted by housing sector GlobeBusiness
Data for October and September was revised to show increases in spending, a reversal from previous estimates of contractions in spending during those months.The gain in November was driven by a 1.9 per cent increase in private home-building, an indication the Federal Reserve’s interest rate cuts last year, which drove mortgage rates lower, were boosting the economy.
The Fed cut rates three times in 2019, softening the hit on the economy from a trade war between the United States and China, as well as slowing global growth. Weakness in the U.S. manufacturing sector has dragged on the economy in recent months. In November, spending on private non-residential structures, which includes manufacturing and power plants, dropped for the third straight month, falling 1.2 per cent to the lowest level since November 2018.
Spending on public construction projects rose 0.9 per cent in November. Spending on state and local government construction projects increased 0.8 per cent. Outlays on federal government construction projects - which are only a sliver of overall public construction spending - increased 1.7 per cent.
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