Construction Spending DESTROYS Expectations At 1.5%

Construction spending massively topped expectations for December, coming in at 1.5%.

Analysts expected an increase of 0.5% month-over-month in December after a revised increase of 0.4% for November.

The headline number was $816.4 billion for year.

Part of this massive beat probably comes from a downward revision in November spending, which was initially estimated to have risen by 1.2% when reported last month.

However, a sharp rise in private spending also accounted for part of the increase, as it increased 2.1% from November to an annual rate of $518.8 billion.

Public construction spending only rose slightly to $286.6 billion in December, an increase of 0.5% from November.

Construction and the housing industry have been sore spots of the recovery so far, particularly since spending was 2.5% below  2010 levels for the first 11 months of last year.

Read the full release from the Census Bureau here.

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