U.S. construction spending posted the smallest annual increase since 2011 as homebuilding slowed amid higher borrowing costs and a glut of apartments in some areas.
The value of construction put in place increased 4.1% in 2018 to $1.3 trillion, according to a Commerce Department report Monday that was delayed by the government shutdown. For December, spending declined 0.6% from the prior month, missing forecasts for a 0.1% gain.
The full-year figure reflected a 3.3% increase in private residential construction that was the smallest advance since 2011. The category had posted gains of more than 10% for six straight years. Within the sector, single-family building was up 5.2% while multifamily housing rose 0.7 percent.
Other areas of weakness in construction spending for 2018 included private manufacturing, which fell 1.7%. On the positive side, state and local outlays jumped 7.1%, the most since 2007.
