Construction spending dropped in November

November saw a decline in construction spending.
November saw a decline in construction spending.
According to recent government data, those who use construction equipment did not see as much spending in their industry in November of last year.

The U.S. Census Bureau reported that estimated construction spending in November came in at a seasonally adjusted annual rate of $900.1 billion, which is 0.6 percent below October's revised estimate of $905.6 billion.

Furthermore, construction spending is down 13.2 percent when compared to November 2008, when it was reported at more than $1.03 trillion. For the first 11 months of 2009, construction spending has totaled $868.9 billion, which is down 12.7 percent when compared to the same time span in 2008.

For private construction projects, spending was reported at an annual rate of $581.2 billion, which is down by 0.7 percent when compared to November. While residential construction fell 1.6 percent, nonresidential construction stayed about the same from October to November, dropping from $330.6 billion to $330.5 billion.

A recent survey taken in December may have reflected the downward trend reported by the government. According to the National Association of Home Builders, confidence in the market for new, single-family homes dropped from 17 in November to 16 in December. A number below 50 on the scale indicates more builders think the market is more poor than good.