WASHINGTON (AP) — U.S. construction spending rose in November at the strongest pace in more than four years, driven by solid gains in home construction and commercial projects.
The Commerce Department said construction spending increased 1 percent in November to a seasonally adjusted annual rate of $934.4 billion. That's the fastest rate since March 2009 and a slight improvement on the revised 0.9 percent gain in October.
Residential construction rose 1.9 percent in November, after falling in October. Homebuilding last exceeded the November pace shortly before the 2008 financial crisis. Spending on single-family homes has increased 18.4 percent year over year, while spending on apartment buildings is up 36.3 percent during the same period.
Those gains are a positive sign for the overall economy. More than two-thirds of the residential construction market comes from single-family homes.
Each new home creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to National Association of Home Builders. The new construction suggests that builders expect buying to continue picking up in 2014.