Construction Spending Falls More-Than-Expected 1 Percent in October
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U.S. construction spending fell a more-than-expected 1 percent in October led by a seventh straight drop in private residential building and adding evidence to a weak housing sector, a government report said on Friday.
Analysts polled by Reuters had predicted a smaller, 0.3 percent drop in overall construction spending in October. Compared to a year ago, total spending was up 0.5 percent, according to the Commerce Department.
Other reports on the housing sector have noted declining sales and rising inventories.
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In October, housing starts fell 14.6 percent.
The overall drop was driven by a 1.9 percent decline in private residential construction and a 1.5 percent drop in private construction. October saw the sixth straight dip in private construction.
Public construction, namely government building projects, rose 0.8 percent to an all-time high of $273 billion. Federal construction saw an 11.6 percent boost in spending.
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Construction spending in September was revised to down 0.8 percent from a previously reported drop of 0.3 percent.