US construction up tiny 0.1 per cent in January with strength coming from housing gain

WASHINGTON – U.S. construction spending showed a tiny increase in January as strength in housing helped to offset declines in nonresidential building and government projects.

The Commerce Department says construction spending edged up 0.1 per cent in January, significantly slower than an upwardly revised 1.5 per cent gain in December.

Home building was up 1.1 per cent in January with single-family construction rising 2.3 per cent and apartment building up 1 per cent.

However, there was widespread weakness outside of housing. Non-residential construction fell 0.2 per cent and office building was flat, with bad weather likely a factor in the weakness.

Total government construction was down 0.8 per cent in January compared with December.

Construction spending totalled $943.1 billion in January at a seasonally adjusted annual rate.