WASHINGTON - U.S. construction spending unexpected fell 0.4 percent in December led by a ninth straight drop in private residential building that ran against all time highs in nonresidential and public construction , a government report said on Wednesday.
Construction spending fell to a seasonally adjusted annual rate of $1.178 trillion, from $1.183 trillion in November, the Commerce Department said.
[Editor's Note: Sir John Templeton warns of market, housing crash – Read More Here]
For the full year, spending hit 1.198 trillion, up 4.8 percent from $1.144 trillion in 2005. Private residential construction for the year was down 1.9 percent.
The report was weaker than economists had anticipated. Wall Street forecasters had expected construction spending to rise 0.1 percent in December after dropping a revised 0.1 percent the prior month.
Private construction spending in December fell 0.8 percent to $896.8 billion, with residential construction down 1.6 percent to $582.3 billion, while nonresidential building increased 0.9 percent to 314.5 billion.
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December's fall in home building ran against other recent data pointing to a stabilizing home construction market. Last week the government reported the pace of U.S. housing starts climbed 4.5 percent in December, well above expectations and boosted by warm weather. But for all of 2006 the rate of new home building posted the biggest decline in 15 years.
Spending in public construction projects rose 0.6 percent to $280.9 billion in December -- an all time high. State and local construction rose 1.2 percent to $261.8 billion, also a record high, while federal construction fell 6.4 percent to $19.1 billion.
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Editor's note:
Sir John Templeton warns of market, housing crash – Read More Here
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