News Summary: US construction spending dips

News Summary: US construction spending drops for first time in 8 months

Associated Press

CONSTRUCTION PROJECTS: Spending on U.S. construction projects fell 0.3 percent in November, the first decline since March.

GOVERNMENT VS. HOUSING: The weakness reflected in part a steep 5.5 percent decline in construction spending by the federal government, a volatile category. This offset a 0.4 percent increase in residential construction, the eighth consecutive gain.

OUTLOOK: Housing construction is expected to keep making gains in 2013 as this sector keeps recovering from a deep slump. But the outlook is less bright for other sectors. Government spending is being constrained by tight budgets and there are lingering problems in commercial real estate as well.

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