WASHINGTON (Reuters) - U.S. construction spending rose less than expected in December, with private outlays barely rising amid declines in investment in power and transportation projects.
Construction spending rose 0.4 percent to an annual rate of $982.1 billion (652 billion pounds), the Commerce Department said on Monday.
November’s construction outlays were revised up to show a 0.2 percent decline instead of the previously reported 0.3 percent fall. Economists polled by Reuters had forecast construction spending rising 0.7 percent in December.
For all of 2014, construction spending increased 5.6 percent. The government reported on Friday that the economy grew at a 2.6 percent annual pace in the fourth quarter, slowing from the third-quarter’s 5.0 percent rate.
In December, private construction spending edged up 0.1 percent, with outlays for power projects falling 1.0 percent and spending on transportation dropping 1.4 percent.
Outlays on residential projects rose 0.3 percent. Residential spending was lifted by gains in both single- and multi-family homes as well as renovations.
Spending on public construction projects increased 1.1 percent in December.
Reporting By Lucia Mutikani; Editing by Andrea Ricci