FXstreet.com (Barcelona) - Construction spending has declined sharply in October, weighed by the long lasting housing market crisis, according to data by the latest report published by the Commerce Department.
Total spending has decreased 0.8% in October from September; to a seasonally adjusted annual rate of $1.158 trillion, at the same time, September's reading has been revised down to a 0.2% increase from the 0.3% rise previously estimated.
October's decline has surpassed the already pessimistic expectations of the market analysts, which forecasted a 0.4% decline.
Residential construction spending decreased in October by 2.0% to $511.2 billion, following a 1.2% decline in September. Compared to October 2006, residential construction spending decreased 15.8%. Non-residential construction spending edged up 0.1% in October. Private sector construction spending declined by 1.4% to $863.2 billion and Public construction spending rose 0.8% to $295.1 billion.