Construction Spending Falls Sharply in January

Washington, DC, March 3, 2008—The slump in the homebuilding sector led to a 1.7 percent decline in U.S. construction spending in January, according to the Commerce Department.

January’s decline was the steepest drop since a 3.6 percent fall in January of 1994. The seasonally adjusted annual rate in January was $1.121 trillion. It was the fourth straight monthly drop.

Home construction fell 3 percent in January to a $455.8 billion rate, the 23rd consecutive monthly decrease.

Private nonresidential construction fell 1.2 percent.

Federal construction was the only major sector to increase, rising 4.2 percent.