Spending on U.S. construction projects fell 0.6 percent in November as gains in the commercial and public sectors offset a decline in residential real estate, Bloomberg reported.

The decline was more than a 0.4 percent drop in October but smaller than the estimated 1.4 percent decrease, according to economists surveyed by Bloomberg.

Private residential construction spending fell 4.2 percent after a 2.1 percent decline in the previous month. It was the biggest decrease since July.

Meanwhile, non-residential construction, including public projects, rose 1 percent in the month and was up 9.2 percent from November 2007. The increase was aided by private construction of power plants and factories, which could cut back if the recession continues.

Public construction rose 1.4 percent due to highway, school, police station and jail projects.