Construction Spending Lowest in More than a Decade

(Newsroom America) -- Spending on new construction in the U.S. fell to its lowest level in more than 10 years in December, as investment in both public and private projects declined, a government report said Tuesday.

Spending fell 2.5 percent to an adjusted annual rate of $787.9 billion, or the lowest level since July 2000, the Commerce Department said.

Meanwhile, the government adjusted its data for November to reflect a 0.2 percent decline in construction spending. Initially the department said spending had increased by 0.4 percent.

The decline in spending for new projects is another clear indicator the economy continues to struggle, analysts said.

December's decline came amid an 11.6 percent drop in federal construction spending, while state and local spending on new projects dropped 1.8 percent.

Investment in private projects fell 2.2 percent last month, ending three straight months of gains, the department said. Private home construction fell 4.1 percent.

© 2010 Newsroom America.

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