Construction spending a bright spot

Construction activity is a major key to economic growth even without a national stimulus plan in place. According to the U.S. Commerce Department, federal building was up 6 percent in November, and state and local building gained 1 percent. Public spending increased 1.4 percent. Total public spending reached a record high rate in November of $322 billion. The Commerce Department said educational construction rose 1.3 percent in November, as did highway work. Public construction was up 7.9 percent year-over-year. Total U.S. construction spending fell only 0.6 percent in November, an indication that building at the end of 2008 was stronger than Wall Street had expected. Analysts polled by Reuters had anticipated the drop to be a much steeper 1.3 percent. October's change was also revised to down 0.4 percent from the originally reported drop of 1.2 percent. Still, private homebuilding, which makes up roughly a third of total spending, fell 4.2 percent to an annual rate of $328 billion, the lowest since August 1999. Your comment?