Construction Spending Falls 1% in October

December 1, 2006 11:30 AM, EST

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onstruction spending posted its biggest decline in five years, falling 1% in October as residential construction continued its downward trajectory, the Commerce Department said Friday.

The drop followed a revised 0.8% drop in September that was larger than initially reported, Commerce said.

Residential construction, meanwhile, plunged 1.9%

conomists had forecast construction spending to decline 0.4% in October, Bloomberg reported.

Construction spending can boost demand for trucking services because spending increases the number of shipments of goods and building materials.