BUSINESS MEMO: CONSTRUCTION SPENDING UP

National construction spending rose 2.6 percent in November, the biggest increase in 17 months, led by much higher government spending on highways and schools.

The Commerce Department reported Tuesday that the escalation in November followed three consecutive monthly declines. It was the largest advance since a 3.7 percent surge in June 1998.

The big jump in building activity caught economists by surprise. They had expected a much smaller 0.3 percent advance for the month.