US construction spending unexpectedly drops in November

US construction spending unexpectedly fell in November, according to the latest figures from the Commerce Department.

Spending slipped 0.4% on the month compared with expectations for a 0.6% increase and a downwardly-revised 0.3% gain in October.

November’s reading marked the first decline in nearly 18 months.

On a year-on-year basis, however, construction spending was up 10.5%.

Among individual sectors, residential construction rose 0.2% on the month, while non-residential spending fell 0.8%.

"For now it looks as though construction, both residential and commercial, will make a smaller contribution to Q4 GDP growth than we had been expecting," said Ian Shepherdson, chief economist at Pantheon Macroeconomics.