US Construction Spending Rises More Than Forecast

Construction spending in the U.S. rose in November for a third time in four months, indicating the industry helped boost growth at the end of 2011.

Building outlays increased 1.2 percent, exceeding the median estimate of 46 economists in a Bloomberg survey that called for a 0.5 percent gain. The October reading was revised down to show a 0.2 percent drop from a previously projected 0.8 percent increase, showing the initial data are susceptible to swings in direction.

Recent gains in the housing market, spurred in part by mortgage rates near record lows (and dominated by multifamily housing growth), are helping the construction industry recover from the 18-month recession that ended in June 2009.

(More on economy beating forecasts . . . )

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