Construction Spending Falls Sharply in January

Total construction spending in the United States declined 1.7 percent in January, following a 1.3 percent drop in December, according to monthly figures released by the Commerce Department.

The January 2008 figure is 3.3 percent below the numbers posted in January 2007.

Private construction fell by 2.2 percent, and residential construction was reported at a seasonally adjusted annual rate of $455.8 billion, 3 percent below December’s revised estimate.

Nonresidential construction also suffered a 1.2 percent setback from December.

Public works projects also fell by 0.2 percent. Educational construction saw a small gain of 0.6 percent above December’s estimate, however, highway construction was at a seasonally adjusted annual rate of $77.5 billion, 1.3 percent below December’s revised estimate.

More information is available at www.census.gov.