Construction spending drops in January

U.S. construction spending fell 0.6 percent to $884.13 billion in January, reaching its lowest level since June 2003, according to Economists were expecting a 0.7 percent decrease.

The third consecutive month of decreased construction spending resulted in part from a slump in private nonresidential spending, which dropped 2.1 percent in January to $316.42 billion—the lowest level since November 2006. Other factors included public construction spending falling 0.7 percent in January and state and local government investment in construction projects decreasing 0.9 percent.

Additionally, residential investment spending slowed to a 5 percent annual rate during the fourth quarter of 2009.

Spending on private home building grew 1.3 percent in January after falling 2.8 percent in December 2009. Federal construction spending increased for the fifth consecutive month, rising 1.9 percent to a record high of $30.68 billion in January.

Date : 3/10/2010