US construction spending falls for seventh month in a row

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.