Construction spending rose 1.5% in January to a seasonally adjusted annual rate of $1.14 billion, according to the Commerce Department report released today. This is the biggest gain since May and pushes total spending to the highest level in more than eight years. The gain was lead by non-residential construction spending.
Nonresidential spending was 2.5% higher for the month and 12.3% higher for the year. These are much welcomed numbers as December’s results were a disappointment to economists. In December overall construction ( public, private commercial / residential ) spending only increased by .1% and fell way below the expected .6%.