US Construction Spending Jumps 1.3% in January

Surging value of commercial projects and highway and road work put in place lead January’s construction spending rise, which was the largest in nine months.

Wells Fargo Economics Group
January 2019 Us Construction Spending Segments
Data: U.S. Department of Commerce

After two months of U.S. constructionJanuary 2019 Us Public Construction Spend spending declines, milder than usual January weather appears to have boosted the total value of construction put in place for the month 1.3% to a seasonally adjusted annual rate of $1.28 trillion. It was the economic indicator’s biggest gain in nine months, according to estimates of the value of construction put in place by the U.S. Commerce Department.

Spending on government projects jumped 4.9 percent, the biggest increase since March 2004. About two-thirds of the public-spending increase came in an 11.8% leap on highway and street projects. Values in the education category rose 2.2% and transportation construction was up 3.1%.January 2019 Us Private Construction Spend

Outlays for commercial projects continue to trend higher, led by gains in office and hotel projects.

January’s conditions did not help home builders, however. Spending on private residential construction fell 0.3% in January and outlays for single-family homes tumbled 0.7%. Multifamily construction rose 1.4% during the month.January 2019 Us Construction Spending