Construction spending increased 0.1 percent in December after falling in October and November, the Commerce Department said Monday.
The December increase was driven by gains in home construction and spending on government projects. That offset declines in spending on private construction of shopping centers, office buildings and hotels.
For all of 2015, construction jumped 10.5 percent to $1.1 trillion, the highest total since 2007.
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Home construction was a bright spot in the fourth quarter, growing at an annual rate of 8.1 percent in the October-December period. That was one of the best showings for any major category.
The overall economy, as measured by the gross domestic product, grew at a meager annual rate of 0.7 percent in the fourth quarter. Economists are looking for stronger growth of around 2.5 percent in the current January-March period.
For December, home construction advanced 0.9 percent, while non-residential construction fell 2.1 percent. Spending on state and local government projects was up 2.3 percent, but spending on federal building projects fell 3.3 percent.
For all of 2015, home construction rose 12.6 percent, while private non-residential activity was up 12 percent. This sector was strong for most of the year, but it has declined in three of the past four months. Spending on state and local building projects rose 6.1 percent in 2015, while spending on federal projects was up a smaller 0.7 percent.
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