Construction Spending Rises Second Straight Month

The amount of money spent in the U.S. for construction projects rose 0.8% in November, marking the second straight month of increase, a government report said Thursday.

The Commerce Department reported that the November figure produced an annual rate of $865.1 billion for 2001.

In a separate report, the Labor Department said that the number of workers filing for unemployment benefits for the first time rose by 36,000 last week – to 447,000 in the week ended Dec. 29.

Bloomberg said that industry observers had projected a construction spending increase of only 0.2%.

Commerce credited the jump in spending to increased government work on schools, highways and sewer projects. Spending on government-funded projects rose 4.6% in November. Spending on highway construction and repair increased by 3.9% for the month.

Increased construction spending can benefit the flatbed trucking industry that hauls a good portion of construction materials.

The report on jobless claims also put the four-week moving average, a figure that takes the week-to-week volatility out of the labor statistics, at 409,750 -- down 8,250 from the previous week.

Higher unemployment numbers are a bad sign for the trucking industry. High unemployment hurts consumer confidence and spending and usually means lower levels of industrial production. All are factors that affect the demand for trucking services.

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