Residential construction was 3.6% higher in December than a year ago.
Construction spending fell 0.2% in December, a slight decline after a solid year of growth, the Commerce Department reported Wednesday.
Economists surveyed by MarketWatch had forecast a 0.2% increase during the month.
Outlays on construction for all of 2016 totalled $1.16 trillion, 4.5% higher than in 2015.
Private construction spending was 0.2% higher in December, while public outlays fell 1.7%.
Residential spending for construction rose 0.5% for the month, and stood 5.2% higher for all of 2016 compared to last year.
The homebuilder ETF from SPDR XHB, +0.00% ticked up slightly after the data release.
Analysts expect stronger construction spending ahead.
Architectural billings, which are a leading indicator, have surged, noted Ian Shepherdson, chief economist for Pantheon Macroeconomics. Ed Zarenski, a construction economist and long-time project cost estimator, expects a solid 2017.
