The rate of spending on construction in the U.S. reached a four-month high in December, according to figures released today by the U.S. Department of Commerce.
The seasonally adjusted annual rate of construction spending rose 1.5 percent to $816.4 billion from the November rate of $804.0 billion. The latest figure reflects a 4.3 percent rise from the December 2010 estimate of $782.9 billion. With the latest tally, Commerce estimated the value of 2011 construction at $787.4 billion, 2.0 percent below the $803.6 billion spent in 2010.
Meanwhile, spending on private construction was at an annual rate of $529.7 billion, 2.1 percent above the November estimate of $518.8 billion. Residential construction was at a rate of $241.2 billion in December, 0.8 percent above the revised November estimate of $239.4 billion.
"There are certainly bright spots for the construction outlook," Michelle Meyer, a senior U.S. economist at Bank of America Corp. in New York, told Business Week. "Multifamily construction will continue to improve given the ongoing shift from owning to renting and the lack of supply in the market. It will still be a very slow healing process."
