Construction spending in November 2012 fell after seven months of steady growth, according to the U.S. Census Bureau of the Department of Commerce.
Based on the U.S. Census Bureau’s report, overall construction spending in November 2012 fell 0.3% from October’s total; however, spending increased 7.7% over the past 12 months.
Private construction spending dropped 0.2% during the month, driven primarily by a decrease of 0.7% in nonresidential spending. Nonresidential spending has been relatively steady during 2012, but should see in increase over the next few months as businesses have a clearer picture of the tax environment with the passage of H.R. 8, the “American Taxpayer Relief Act of 2012.”
Public construction spending continued its rollercoaster of ups and downs, with a decrease of 0.4% in November, as well as a decrease of 2.6% from a year ago. The largest categories of public spending (educational construction and highway and street construction) increased from October, but are still down from spending levels in November 2011. Public spending should see an increase over the next few months, as the first wave of funding for Superstorm Sandy relief was passed by the House and Senate on January 4th, totaling approximately $9 billion.
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