January Construction Spending Drops 1.1%

Outlays for U.S. construction projects declined 1.1% in January to a seasonally adjusted annual rate $971.4 billion, led by public spending, the U.S. Commerce Department reported Monday. Economists polled by MarketWatch had expected a 0.3% increase in January compared with originally reported increase in spending of 0.4% in December. On Monday, the government revised December's increase to 0.8%. Private-construction spending fell 0.5% in January, despite a 0.6% increase for residential projects. There was a 1.6% decline for nonresidential projects. Meanwhile, public-construction spending dropped 2.6% in January.