
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, February 2, 1994                   TAG: 9402020048
SECTION: BUSINESS                    PAGE: B7   EDITION: METRO  
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Short

... AND A SURPRISE FINISH IN CONSTRUCTION

Construction spending rose an unexpected 2.6 percent in December to finish the year with a 7.9 percent annual increase, the Commerce Department said Tuesday.

Economists said they expect the advance - which most had predicted would be only 1.5 percent - will carry over into 1994. They noted that even the depressed office and industrial building sector appears to be rebounding.

"We have a fairly broad-based increase in construction activity," said Michael Carliner, an economist with the National Association of Home Builders. "We'll probably see some drop-off in January because of the weather. But we're finally seeing some turnaround."

Carliner said he also expects to see increased government spending to help rebuild the Los Angeles area hit by last month's earthquake.

The Commerce Department reported that residential, non-residential and government spending on construction totaled a record $470.3 billion in 1993, up from $436.0 billion in 1992, when spending increased 8.1 percent.

In December, spending totaled a record $513.1 billion at a seasonally adjusted annual rate, up from $500 billion a month earlier. It was the eighth straight increase, the first such string of advances since November 1983-June 1984.

by CNB