November Spending For Construction Off

Spending on construction from apartments to warehouses fell sharply in November but economists are predicting low interest rates will keep construction from slipping much this year.

The 0.9 percent decline to a seasonally adjusted annual rate of $609 billion was the worst in 11 months, the Commerce Department said Monday.

An increase in spending on housing wasn’t enough to offset a large decrease in nonresidential commercial construction and a small one in government building.

However, the overall drop in November followed four consecutive gains.

“The construction sector remains at a strong level, with the big increase in October,” said economist Lynn Reaser of Barnett Banks Inc. in Jacksonville, Fla. “As a result, the latest decline should not be viewed with too much concern.”