Dive Brief:
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Federal and state governments built fewer schools and roads in November, leading to a 0.3% dip in construction spending, the Commerce Department reported last week.
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The news came as a surprise after spending climbed 1.2% in October. The dip was largely blamed on a 2.5% decline in spending on public school construction, although transportation, public sector power projects, healthcare, and public safety projects also tapered off during the month.
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Homebuilding picked up by 1% during November, Commerce reported.
Dive Insight:
Although construction activity eased in November, there is no indication that a prolonged slowdown is in the works. Analysts pointed to falling energy costs as a possible reason for the dip in power project construction, but overall indicated they were unclear about the reason for the November decline.