Construction fell to a seasonally adjusted annual rate of $1.078 trillion, a drop of 0.6 percent from October's revised estimate of $1.115 trillion, the report said.

Economists had forecast a decline of 1.3 percent.

Private construction, at a seasonally adjusted annual rate of $756.4 billion fell 1.5 percent below October's revised figure of $767.7 billion, the report said.

Residential private construction fell sharply, down 4.2 percent in November with seasonally adjusted annual spending at $328.3 billion.

Non-residential private spending on construction projects rose 0.7 percent on the month to an adjusted annual rate of $428.2 billion.

Public construction rose in November, up 1.4 percent to $322 billion.

Educational construction rose 1.3 percent to $88.7 billion, while highway construction outlays rose 1.3 percent to $83.9 billion, the government said.