U.S. spending on construction projects increased by 0.9% to $1.459 trillion in November, the highest level since the government started tracking the series in 2002.
This increase occurred as strength in home building offset weakness in other parts of the industry. A robust housing market and historically low mortgage rates also significantly contributed to the boost in U.S. construction spending.
Strong construction spending supported economists’ predictions that the economy grew around a 5% annualized rate in the fourth quarter. This was down from a record 33.4% rate in the third quarter because of a resurgence in coronavirus cases, which greatly impacted the services sector.
Additionally, growth is slowing following the use of over $3 trillion in government…