0.6% Slip Recorded by Construction Spending in November

commercial buildingOfficial figures have confirmed that for the seventh consecutive month, construction activity declined as spending on both residential and commercial building projects fell, a sign which worried experts about lingering troubles in the construction market that might end up acting as a drag on the overall economic recovery.

On Monday, the Commerce Department confirmed that construction spending fell by 0.6% for the month of November, a bigger slip than the 0.4% that analysts were expecting.

The sector's weakness was widespread with spending on housing declining by the largest amount recorded since the month of June 2009. Non-residential buildings, on the other hand, dipped for the eighth consecutive month.

The 0.6% fall in activity for November has come after a decline of 0.5% recorded for October. The 7 straight declines have managed to push the construction spending down to a yearly rate, seasonally adjusted, of $900.1 Billion, which is the slowest pace recorded in over 6 years and 13.2% below the level of activity last year.

Falls were recorded in both private and public construction projects.