U.S. construction spending edged down 0.6 percent in December with declines in residential construction and government projects. Even with the December setback, construction spending for all of 2018 reached record levels although the annual increase was the smallest in seven years.

The Commerce Department said Monday that the December performance followed a 0.8 percent rise in November. Residential construction fell by 1.4 percent in December, revealing ongoing struggles in the housing sector. Nonresidential activity rose 0.4 percent, while spending on government projects fell 0.6 percent, with both federal and state and local activity falling.

For the year, construction spending rose 4.1 percent to $1.3 trillion. It was an all-time high but the 4.1 percent gain was the weakest performance since spending fell 2.6 percent in 2011.