WASHINGTON, Jan. 3 (UPI) -- The Commerce Department on Thursday said that U.S. construction spending posted its second rise in six months during November, rising 0.8 percent to a seasonally adjusted annual rate of $865.1 billion.
Economists on Wall Street were expecting spending on residential, commercial and public sector construction to rise 0.2 percent during the month after rising a revised 0.8 percent in October, which the government originally reported as improving 1.9 percent.
Analysts said lower interest rates have helped housing construction and home sales.
The latest report from the Commerce Department showed residential construction spending, which accounts for almost half of all building activity, fell 2.2 percent during the month after rising 0.1 percent during the previous month.
Construction of new single-family homes slipped 0.3 percent in November after rising 0.2 percent in October. Spending on home improvements fell 6.0 percent after jumping 3.2 percent during the previous month.
Spending on commercial projects, including offices, factories and hotels, rose 0.5 percent in November after rising 1.8 percent in October.
The report also showed among government-funded construction projects, spending rose 4.6 percent in November after rising 7.3 percent in October. Spending on highways and streets rose 3.9 percent in November.
