October Construction Spending Drops 1.2%

Construction spending fell 1.2% in October, the Commerce Department said Monday.

The downturn followed no change in the prior month, Commerce said. Economists had forecast a 1% decline, Bloomberg reported.

Private residential construction fell 3.5%, the biggest drop since July, while private non-residential construction projects fell 0.7%.

Total non-residential construction, including public projects, fell 0.1%, after a 0.2% gain in September, Bloomberg said.

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