WASHINGTON—U.S. construction spending increased less than expected in December as a solid rise in private projects was partially offset by a sharp decline in outlays on public projects.
The Commerce Department said on Tuesday that construction spending rose 0.2 percent after advancing 0.6 percent in November.
Economists polled by Reuters had forecast construction spending gaining 0.6 percent. Construction spending increased 9.0 percent on a year-on-year basis in December. It rose 8.2 percent in 2021.
Spending on private construction projects rose 0.7 percent in December. Outlays on residential construction surged 1.1 percent.
Single-family homebuilding spending accelerated 2.1 percent, while outlays on multi-family housing projects rose 0.4 percent.
Homebuilding remains constrained by higher prices for building materials, especially framing lumber. The United States last November nearly doubled the duties on imported Canadian softwood lumber to 17.9 percent from 9 percent after a review of its anti-dumping and countervailing duty orders. Residential investment contracted for a third straight quarter in the fourth quarter.
Investment in private non-residential structures like gas and oil well drilling was unchanged in December. Spending on structures also dropped for a third straight quarter in the October-December period.
Spending on public construction projects dropped 1.6 percent in December. Outlays on state and local government construction projects declined 1.3 percent, while federal government spending tumbled 5.4 percent.
