U.S. construction spending posts first drop since June

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U.S. construction spending posts first drop since June
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U.S. construction spending unexpectedly fell in December, posting its first drop...

Construction cranes are pictured at sunset in Los Angeles, California, U.S., January 27, 2020. Picture taken January 27, 2020. REUTERS/Mario Anzuoni

The Commerce Department said on Monday construction spending decreased 0.2%. Data for November was revised up to show construction outlays rising 0.7% instead of increasing 0.6% as previously reported. For all of 2019, construction spending fell 0.3%, the first annual decline since 2011, after rising 3.3% in 2018.

Spending on nonresidential structures fell 0.5% in November. The government in its fourth-quarter GDP report last week said spending on nonresidential structures contracted in 2019 by the most since 2016. Outlays on private nonresidential structures have been depressed by a manufacturing downturn due to trade tensions and cheaper energy products.

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