WASHINGTON, (Reuters) - U.S. construction spending unexpectedly fell in November, held back by a drop in government outlays and by less money spent by businesses on projects other

than homes.

Construction spending fell 0.3 percent, the first decline since June, to an annual rate of $975 billion, the Commerce Department said on Friday.

October's construction outlays were revised up to show a 1.2 percent gain instead of the previously reported 1.1 percent increase. Economists polled by Reuters had forecast construction spending rising 0.3 percent in November.

While the readings could point to softer investment by businesses and governments, spending on home construction looked more robust. Outlays on private residential construction rose 0.9 percent in November.





(Reporting by Jason Lange; Editing by Paul Simao)