The Commerce
Department announced on Friday that the U.S. construction spending fell 0.2 per
cent m-o-m in January 2024, following an upwardly revised 1.1 per cent m-o-m climb
(from +0.9 per cent m-o-m) in December 2023. This was the first decline in
construction spending since December 2022 (-0.1 per cent m-o-m).
Economists had expected construction spending to grow by 0.2
per cent m-o-m in January.
According to
the report, spending on private construction edged up 0.1 per cent m-o-m in January,
underpinned by a 0.2 per cent m-o-m advance in residential spending. Meanwhile, non-residential spending
slipped 0.1 per cent m-o-m.
The public construction outlays declined
0.9 per cent m-o-m, undermined by a 1.0
per cent m-o-m decrease in nonresidential public spending. At the same time, residential public construction spending surged 1.9 per
cent m-o-m.
On a y-o-y
basis, construction spending jumped 11.7 per cent in January.