Data from US commerce department shows spending on residential and commercial projects continues to decline
Spending on construction projects in the United States fell in November for the seventh consecutive month, according to the latest data from the US commerce department.
The figures showed a seasonally adjusted annual rate of $900.1bn (£558bn), 0.6% below October’s figure and 13.2% below its level a year earlier.
The data also contained a large downward revision to previous figures, with October now recording a drop of 0.5%, compared with the initial estimate of no change.
Spending on private residential construction dropped 1.6% to of $250.7bn. Spending on commercial projects from office buildings to factories and shopping centres fell 0.03%, the eighth drop in succession.
Paul Ashworth, senior US economist at Capital Economics, told the Times: “The outlook for commercial real estate was still pretty grim, with the supply glut and very tight financing conditions pointing to a further contraction over the next 12 months,” he said.