US ECON: January Construction Spending Down 3.3%
Total US construction spending fell more than expected in January as cutbacks in federal, state and local building helped fuel the downturn carried by continuing declines in both business and residential construction spending, the Commerce Department reported today.
Total US construction fell 3.3% in January to its lowest level since June 2004. Economists were expecting only a 1.5% decline in spending after three months of cutbacks. Worsening this downturn was a steep revision to December construction spending, from a 1.4% decline to a 2.4% decline.Total private construction fell 3.7% in January to its lowest level since August 2003.
Housing continued its steady contraction with private residential construction falling 2.9% to its lowest level since April 1998. Over the year, homebuilding was down 28.0%.
Business construction fell by 4.3%, the largest decline since January 1994, bringing total private non-residential construction spending to its lowest level in a year. Despite January's steep decline, business construction spending is still up 0.3% over the last twelve months.
Private non-residential construction fell in all categories except for a meager 0.3% gain in education construction spending.
Construction by state and local governments fell by 1.9%, marking the third consecutive month of decline in this category. Federal construction fell by 6.6%, the first and largest decline since September.
source:Forbes.com
