U.S. construction activity declined less than expected in November as record-high activity on non-residential buildings helped to offset another sharp drop in housing, the government reported . The Commerce Department said construction spending fell by 0.6 percent in November, less than half the 1.3 percent drop expected by economists. A surprisingly strong 0.7 percent increase in non-residential construction helped offset a 4.2 percent plunge in housing activity. The 0.6 percent decline in total construction spending followed a 0.4 percent droop in October. The consecutive monthly declines left construction spending at an annual rate of $1.078 trillion, down 3.3 percent from a year ago. Residential construction is down 23.4 percent from a year ago. Despite November's better-than-expected performance, the outlook is for continued weakness as the worst recession in at least 25 years hits the construction sector. Economists expect housing, which has been weak for two years, will continue to struggle in the coming months. They also are worried that non-residential projects will decline as developers deal with a severe financial crisis that makes it difficult to obtain financing.
