U.S. construction projects rose in December continuing a seven-year high as the housing market continued its recovery.
Construction spending rose to a seasonally adjusted annual rate of $885 billion in December, the Commerce Department said Friday. That was up 0.9 percent from November, when spending increased a revised 0.1 percent.
Construction spending climbed 9.2 percent for all of 2012, the first annual increase since 2006 and the biggest since 2005, today's report showed.
Private construction spending advanced 2 percent in December from the prior month.
Homebuilding outlays increased 2.2 percent to a $308.2 billion annual rate, the highest level since November 2008. Private non-residential projects rose 1.8 percent, reflecting gains in schools and power plants.
For all of 2012, spending grew 9.2%, the best gain since 2005, as the housing market began its recovery - residential construction ballooned by 22.3% last year.
Meanwhile, nonresidential construction grew a modest 1.2% in 2012.
