U.S. Construction Falls to Near Seven-Year Low

Washington, DC, March 1, 2010--U.S. construction spending in January fell to its lowest level since June 2003, hurt by a decrease in private nonresidential spending and weak public construction, the Commerce Department said.

The government said construction spending dropped 0.6 percent to $884.13 billion, after falling by an unrevised 1.2 percent in December.

Economists forecast construction spending falling 0.7 percent in January.

Private nonresidential spending, suffering from high vacancy rates, tumbled 2.1 percent in January to $316.42 billion, the lowest level since November 2006, after falling 0.7 percent in December. It was the tenth straight month of decline.

State and local government investment in construction projects fell 0.9 percent in January, down for a seventh straight month, after declining 0.6 percent in December.

Public construction spending decreased 0.7 percent in January following a 0.4 percent drop the prior month.

Spending on private home building jumped 1.3 percent in January after dropping 2.8 percent the prior month.