The small improvement came despite the fact that housing fell for a record 21st straight month, with private residential construction dropping by 2.5 percent to an annual rate of $484.9 billion, down by 17.5 percent from a year ago.

The blow to the construction industry from the housing meltdown is being cushioned somewhat by strength in government projects and non-residential activity.

Private non-residential spending rose by 1.7 percent, a 14th consecutive monthly gain, which pushed spending in this category to an all-time high of $375.8 billion at an annual rare. Strong increases were seen in November for office building, hotels, power plants, factories and amusement parks.

Spending on government projects rose by 2.5 percent, the biggest one-month gain since December 2006, pushing activity in this area to a record level of $304.3 billion at an annual rate.

Spending by state and local governments was up 2.5 percent while spending by the federal government rose 2.2 percent.

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