February 2, 2004 9:00 AM, EST

December Construction Spending Rises 0.4%

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ueled by record housing sales, construction spending in December rose for a seventh straight month, the Commerce Department said Monday.

The increase of 0.4% to a $933.2 billion annual rate followed a revised 0.5% increase in November.

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

For all of 2003, spending on construction totaled $898.2 billion, up 4.3% from 2002, Commerce said.

Residential construction, which accounts for more than half the total, rose 0.9% to a $507.5 billion annual rate, while nonresidential building construction dropped 0.3%.

The report also said government spending on transportation projects declined 0.2% to $17.6 billion. Investment in roads and highways increased 0.3% to $67.2 billion.

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