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Outlays for construction projects fell by a seasonally adjusted annual rate of 1.2 percent to $913.2 billion after dropping 0.6 percent in November, the report said.

From a year ago, when spending totaled slightly over $1 trillion, total construction outlays fell 12.4 percent.

Expenditures on private construction on a seasonally adjusted annual rate dropped 1.2 percent from the previous month to $593 billion.

Residential construction fell 2.8 percent in the month, while non-residential project spending dropped 0.2 percent.

Spending also dropped 1.2 percent on public projects with the month's outlays coming to $309.6 billion. Spending on educational construction dropped 0.4 percent, while spending on highway projects fell 2.3 percent, Commerce said.

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