Construction Spending Falls to Decade Low

Construction spending dropped 2.5% in December to the lowest level in a decade, the Commerce Department reported Tuesday.

The decrease, which followed a 0.2% revised gain in November, contrasts with economists’ estimates of a 0.1% rise, Bloomberg reported. It was the largest drop since July.

Public construction spending dropped 2.8% and federal spending fell 12%, the biggest decrease since October 2004.

Private construction decreased 2.2%. Homebuilding fell 4.1%, while private non-residential projects dropped 0.5%.

Construction spending can boost demand for trucking services because spending increases the number of shipments of goods and building materials.