Spending on U.S. construction projects edged down a slight 0.2% in December, closing out a year when total construction registered its first annual decline in eight years.

The Commerce Department said Monday that the decline was the first monthly drop since a 0.9% fall in June. For the year, construction spending fell 0.3%, the first setback since a 2.6% decrease in 2011.

The fall-off reflects weakness in nonresidential construction, which fell 1.8%, the sharpest setback drop since April. Spending for most major categories from office building to shopping centres declined.

Home building rose a solid 1.4%. This category continues to benefit from falling mortgage rates and a strong labour market.

Spending by the federal government on construction projects rose a sharp 2.1% in December to the highest level in seven years, but this was offset by a 0.6% drop in the larger state and local government category.

The 0.3% drop in construction spending for 2019 followed eight straight years of gains and left total spending at $1.3 trillion in 2019, down from $1.31 trillion in 2018, a year when spending had risen 3.3%.

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