With the construction activity increased for new houses and government-backed highways, the US construction spending accelerated in December. According to the Commerce Department, construction spending rose 0.4 per cent in December. Total construction spending in 2014 increased 5.6 per cent to $961 billion, with the gains slightly below the pace of 5.7 per cent in 2013. While spending on single-family houses rose 1.2 per cent in December from the prior month, highway and street construction grew by 2.1 per cent and factory building by 1.9 per cent. Construction of schools and commercial centres fell in December.
Over the course of 2014, spending on offices, power plants, factories and lodgings climbed significantly, potentially signaling broader economic growth in 2015 that could further boost residential construction.