Dive Brief:
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The building of new homes and work on federal highways drove an increase in construction spending of 0.4% in December, the Commerce Department reported on Monday.
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That brought total construction spending for the year to $961 billion, 5.6% more than in 2013—although the pace of construction slowed slightly from year to year, the report said.
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Spending on single-family homes grew by 1.2% in December, while road construction rose 2.1%, and factory building increased by 1.9%.
Dive Insight:
As spending rose, so did job growth: Employers across industries created nearly 3 million new jobs in 2014, more than any year since 1999, the Commerce Department reported. New jobs lead to greater consumer and business spending, which increases the demand for hotels and office buildings and spurs more building. The American Institute of Architects predicted last week that spending on nonresidential construction will increase 7.7% this year and 8.2% in 2016.