Construction spending hits record high in January

[WASHINGTON] US construction spending surged to a record high in January, boosted by strong private and public outlays.

The Commerce Department said on Monday that construction spending increased 1.7 per cent to US$1.521 trillion, the highest level since the government started tracking the series in 2002. Data for December was revised slightly higher to show construction outlays rising 1.1 per cent instead of 1.0 per cent as previously reported.

Economists polled by Reuters had forecast construction spending would increase 0.8 per cent in January. Construction spending accelerated 5.8 per cent on a year-on-year basis in January.

Construction spending accounts for about 4 per cent of gross domestic product.

Spending on private construction projects increased 1.7 per cent, lifted by investment in single-family homebuilding amid cheaper mortgages and a pandemic-driven migration to suburbs and low-density areas. That followed a 1.5 per cent advance in December.

Spending on residential projects rose 2.5 per cent after surging 3.8 per cent in December. Outlays on nonresidential construction like gas and oil well drilling rose 0.4 per cent.

Spending on public construction projects increased 1.7 per cent.

State and local government outlays gained 1.3 per cent, while federal government spending soared 6.8 per cent.

REUTERS