US construction spending jumps to eight-year high

Washington

US construction spending surged in January to the highest level since 2007, in the latest indication that the economy was regaining momentum after slowing in the fourth quarter.

Construction spending increased 1.5 per cent to US$1.14 trillion, the highest level since October 2007, as both private and public outlays rose, the Commerce Department said on Tuesday. That followed an upwardly revised 0.6 per cent increase in December, previously reported as a 0.1 per cent gain.