U.S. construction spending rose more than expected in November, reaching its highest level in 10-1/2 years, which could provide a lift to fourth-quarter economic growth.

The Commerce Department said on Tuesday that construction spending increased 0.9 percent to $1.18 trillion, the highest level since April 2006. It was boosted by gains in both private and public sector investment

Construction spending in October was revised up to show a 0.6 percent rise instead of the previously reported 0.5 percent increase. Construction spending was up 4.1 percent from a year ago in November.

Economists polled by Reuters had forecast construction spending rising 0.6 percent in November. November's better-than-expected increase and October's upward revision to construction spending could prompt economists to raise their gross domestic product estimates for the fourth quarter.

Spending on private construction projects jumped 1.0 percent in November to its highest level since July 2006 as single-family home building, as well as home renovations, increased.

Investment in private nonresidential structures — which include factories, hospitals and roads — rose 0.9 percent after tumbling 1.5 percent the prior month.

Public construction spending gained 0.8 percent in November to the highest level since March. It was the fourth straight month of increases. Outlays on state and local government construction projects rose 0.6 percent, also gaining for a fourth consecutive month.

Federal government construction spending surged 3.1 percent after rising 0.2 percent in October.</s>US construction spending up 0.9 percent in November to $1.18 trillion, highest in 10 years.</s>, which could provide a lift to fourth-quarter economic growth.The Commerce Department said on Tuesday that. It was boosted by gains in both private and public sector investmentConstruction spending in October was revised up to show a 0.6 percent rise instead of the previously reported 0.5 percent increase. Construction spending was up 4.1 percent from a year ago in November.Economists polled by Reuters had forecast construction spending rising 0.6 percent in November. November's better-than-expected increase and October's upward revision to construction spending could prompt economists to raise their gross domestic product estimates for the fourth quarter.Spending on private construction projects jumped 1.0 percent in November to its highest level since July 2006 as single-family home building, as well as home renovations, increased.Investment in private nonresidential structures — which include factories, hospitals and roads — rose 0.9 percent after tumbling 1.5 percent the prior month.Public construction spending gained 0.8 percent in November to the highest level since March. It was the fourth straight month of increases. Outlays on state and local government construction projects rose 0.6 percent, also gaining for a fourth consecutive month.Federal government construction spending surged 3.1 percent after rising 0.2 percent in October.Economic activity in the manufacturing sector expanded in December, according to The Institute for Supply Management on Tuesday, and the overall economy grew for the 91st consecutive month.The U.S. manufacturing index was hit 54.7, an increase of 1.5 percentage points from the November reading of 53.2 percent. Economist expected the index to hit 53.5 for December, according to a Thomson Reuters consensus estimate.The ISM manufacturing index has topped 50 for nine of the last 10 months. A reading above 50 indicates expansion in the manufacturing sector and a reading below 50 indicates contraction.Bradley Holcomb, chair of the Institute for Supply Management, said in the report.U.S. factories are steadily rebounding from a rough patch hit in late 2015 and early 2016. The decline in energy prices caused cutbacks in orders for equipment and pipelines, while a stronger dollar and slower economic growth abroad hurt exports.</s>Washington
• U.S. builders boosted spending on construction projects for a second straight month in November, pushing activity to the highest level in more than a decade.

Construction spending rose 0.9 percent in November after a 0.6 percent increase in October, the Commerce Department reported Tuesday. The increase reflected solid gains in home construction, nonresidential building and government construction activity.

The gains in all three categories pushed total construction to a seasonally adjusted annual rate of $1.18 trillion, the highest point since April 2006 when a housing boom fueled building.

Economists believe construction will continue to show gains in 2017, reflecting a strong job market with unemployment at the lowest point in nine years.</s>FILE - In this Dec. 15, 2014 photo, a worker balances himself while working on the framing of a house under construction in Coppell, Texas. U.S. builders boosted spending on construction projects for a second straight month in November, pushing activity to the highest level in more than a decade. Construction spending rose 0.9 percent in November after a 0.6 percent increase in October, the Commerce Department reported Tuesday, Jan. 3, 2017. (AP Photo/LM Otero)

WASHINGTON (AP) -- U.S. builders boosted spending on construction projects for a second straight month in November, pushing activity to the highest level in more than a decade.

Construction spending rose 0.9 percent in November after a 0.6 percent increase in October, the Commerce Department reported Tuesday. The increase reflected solid gains in home construction, nonresidential building and government construction activity.

The gains in all three categories pushed total construction to a seasonally adjusted annual rate of $1.18 trillion, the highest point since April 2006 when a housing boom fueled building.

Economists believe construction will continue to show gains in 2017, reflecting a strong job market with unemployment at the lowest point in nine years.

Financial markets sent stock prices to record highs following the election of Donald Trump, reflecting in part enthusiasm over his vows to increase spending on projects to repair and replace the country's aging infrastructure.

For November, the 1 percent rise in residential construction reflected a 1.8 percent rise in single-family construction which offset a 2.7 percent drop in the smaller and more volatile apartment construction sector.

The 1 percent rise in nonresidential construction followed a 1.6 percent decline in October. The gains in November were led by 7 percent jump in hotel and motel construction.

The 0.8 percent advance in government projects reflected a 3.1 percent rise in spending at the federal level and a 0.6 percent increase in construction by state and local governments.

President Barack Obama sought for a number of years to get Congress to approve higher infrastructure spending, but he was blocked by opposition from Republicans who complained that the projects would increase budget deficits. Democrats in Congress have already expressed support for Trump's proposals to boost construction spending. His ideas, however, may still face opposition from Republicans worried about high deficits.</s>WASHINGTON (dpa-AFX) - Construction spending in the U.S. increased by more than expected in the month of November, the Commerce Department revealed in a report released on Tuesday.



The report said construction spending climbed by 0.9 percent to an annual rate of $1.182 trillion in November from the revised October estimate of $1.171 trillion. Spending had been expected to rise by 0.6 percent.



With the bigger than expected increase, construction spending rose to its highest annual rate since reaching $1.192 trillion in April of 2006.



The bigger than expected increase in construction spending was partly due to a jump in spending on private construction, which surged up by 1.0 percent to a rate of $892.8 billion.



Spending on residential construction jumped by 1.0 percent to a rate of $462.9 billion, while spending on non-residential construction climbed by 0.9 percent to a rate of $429.9 billion.



The report also said spending on public construction increased by 0.8 percent to a rate of $289.3 billion, reflecting growth in spending on both educational and highway construction.



The Commerce Department noted that total construction spending in November was up by 4.1 percent compared to the same month a year ago.



Copyright RTT News/dpa-AFX</s>U.S. construction spending rose more than expected in November, reaching its highest level in 10-1/2 years, which could provide a lift to fourth-quarter economic growth.

The Commerce Department said on Tuesday that construction spending increased 0.9 percent to $1.18 trillion, the highest level since April 2006. It was boosted by gains in both private and public sector investment

Construction spending in October was revised up to show a 0.6 percent rise instead of the previously reported 0.5 percent increase. Construction spending was up 4.1 percent from a year ago in November.

Economists polled by Reuters had forecast construction spending rising 0.6 percent in November. November’s better-than-expected increase and October’s upward revision to construction spending could prompt economists to raise their gross domestic product estimates for the fourth quarter.</s>WASHINGTON (AP) – U.S. builders boosted spending on construction projects for a second straight month in November, pushing activity to the highest level in more than a decade.

Construction spending rose 0.9 percent in November after a 0.6 percent increase in October, the Commerce Department reported Tuesday. The increase reflected solid gains in home construction, nonresidential building and government construction activity.

The gains in all three categories pushed total construction to a seasonally adjusted annual rate of $1.18 trillion, the highest point since April 2006 when a housing boom fueled building.

Economists believe construction will continue to show gains in 2017, reflecting a strong job market with unemployment at the lowest point in nine years.

Financial markets sent stock prices to record highs following the election of Donald Trump, reflecting in part enthusiasm over his vows to increase spending on projects to repair and replace the country's aging infrastructure.

For November, the 1 percent rise in residential construction reflected a 1.8 percent rise in single-family construction which offset a 2.7 percent drop in the smaller and more volatile apartment construction sector.

The 1 percent rise in nonresidential construction followed a 1.6 percent decline in October. The gains in November were led by 7 percent jump in hotel and motel construction.

The 0.8 percent advance in government projects reflected a 3.1 percent rise in spending at the federal level and a 0.6 percent increase in construction by state and local governments.

President Barack Obama sought for a number of years to get Congress to approve higher infrastructure spending, but he was blocked by opposition from Republicans who complained that the projects would increase budget deficits. Democrats in Congress have already expressed support for Trump's proposals to boost construction spending. His ideas, however, may still face opposition from Republicans worried about high deficits.

Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.</s>US construction spending picks up speed in November

US construction spending picked up in November, reaching the highest level since April 2006 -- well before the onset of the financial crisis, the Commerce Department reported Tuesday.

The 0.9 percent increase in total construction spending compared to October was driven by solid gains in private and public building projects, and jumped to an annual rate of $1.18 trillion, adjusted for seasonal factors. Spending was up more than four percent compared to November 2015,

Private and public spending increased for residential and non-residential construction, however, private spending on multi-family dwellings like apartment buildings declined 2.7 percent from the prior month, an issue that has been worrying realtors concerned about the tight supply of homes available for sale. However, the rate is nearly 11 percent higher than a year earlier.

Private spending on building projects hit its highest level since July 2006 reaching an annual rate of $892.8 billion, and jumped 4.6 percent compared to the same month of last year. However, spending on manufacturing dropped 1.1 percent in the month.

Public construction spending rose to $289.3 billion -- 2.6 percent higher than November 2015 -- but saw declines in spending in the month for sewage systems, transportation and public safety.

For the first 11 months of 2016, construction spending was 4.4 percent higher than the same period of 2015, at just under $1.1 trillion.</s>WASHINGTON (Reuters) - U.S. factory activity accelerated to a two-year high in December amid a surge in new orders and employment, suggesting some of the oil-related drag on manufacturing was fading.

Other data on Tuesday showed construction spending hitting a 10-1/2-year high in November, which could provide a lift to fourth-quarter economic growth. The reports suggested president-elect Donald Trump was inheriting a strong economy, marked by a labor market that is near full employment, from the Obama administration.

The Institute for Supply Management (ISM) said its index of national factory activity rose 1.5 percentage points to a reading of 54.7 last month, the highest since December 2014. A reading above 50 indicates an expansion in manufacturing, which accounts for about 12 percent of the U.S. economy.

A gauge of new orders jumped 7.2 percentage points, to the highest level since November 2014. A measure of factory employment rose 0.8 percentage point, to the highest level since June 2015.

A collapse in oil prices in 2015, together with a surge in the dollar, have hobbled manufacturing. Much of the impact has been through weak business spending on equipment, which has contracted for four consecutive quarters.

But with oil prices rising and touching 18-month highs on Tuesday, manufacturing is starting to perk up. Gas and oil well drilling has risen over the last several months.

In a separate report, the Commerce Department said construction spending increased 0.9 percent to $1.18 trillion in November, the highest level since April 2006. It was boosted by gains in both private and public sector investment

Construction spending in October was revised up to show a 0.6 percent rise instead of the previously reported 0.5 percent increase. Construction spending was up 4.1 percent from a year ago in November.

November's solid increase and October's upward revision to construction spending could prompt economists to raise their gross domestic product estimates for the fourth quarter.

The Atlanta Federal Reserve is currently forecasting GDP increasing at a 2.5 percent annualized rate in the fourth quarter. The economy grew at a 3.4 percent rate in the third quarter.

The dollar rose to a fresh 14-year high against a basket of currencies after the data, while prices for U.S. government debt fell. U.S. stocks were trading higher.

Spending on private construction projects jumped 1.0 percent in November to its highest level since July 2006 as single-family home building, as well as home renovations, increased.

Investment in private nonresidential structures -- which include factories, hospitals and roads -- rose 0.9 percent after tumbling 1.5 percent the prior month.

Public construction spending gained 0.8 percent in November to the highest level since March. It was the fourth straight month of increases. Outlays on state and local government construction projects rose 0.6 percent, also gaining for a fourth consecutive month.
The U.S. Commerce Department announces that construction spending increased 0.9 percent to $1.18 trillion in November 2016, the highest level since April 2006.