US construction spending drops 1 percent in January

1 photo
Save Story

Estimated read time: 1-2 minutes

This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

WASHINGTON (AP) — Builders cut back on construction spending in January by the largest amount in nine months, with weakness stemming from the biggest reduction in government activity in nearly 15 years.

Construction spending fell 1 percent in January, the Commerce Department reported Wednesday. It was the first decline since September and the biggest drop since a 2.9 percent dip in April.

Spending on government projects tumbled 5 percent, the largest one-month drop since March 2002.

President Donald Trump wants to sharply increase spending on government infrastructure projects over the next decade. But his proposal is expected to face hurdles winning approval in Congress at a time of rising budget deficits.

For January, spending by the federal government on construction projects was down 7.4 percent, while spending by state and local governments fell 4.8 percent. The overall decline in government spending pushed total activity in the category down to a seasonally adjusted annual rate of $268.7 billion, the lowest level since last March.

Residential construction showed a modest gain, while private nonresidential activity was flat.

The 1 percent fall in total construction spending followed a tiny 0.1 percent rise in December and left total activity at an annual rate of $1.18 trillion, 3.1 percent higher than a year ago.

Economists believe that construction activity should provide support for overall economic growth this year, driven by continued strength in housing construction.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Most recent Business stories

Related topics



    Get informative articles and interesting stories delivered to your inbox weekly. Subscribe to the Trending 5.
    By subscribing, you acknowledge and agree to's Terms of Use and Privacy Policy.

    KSL Weather Forecast