US construction spending hits record high in January with housing and government spending up sharply.
WASHINGTON — Spending on U.S. construction projects rose to an all-time high in January, helped by strong gains for home construction and government building projects.
The Commerce Department said Monday that construction spending increased 1.8% in January, the strongest monthly rise in nearly two years, pushing totally spending to a record seasonally adjusted annual rate of $1.37 trillion.
Spending on home construction jumped 2.1%, the strongest gain since August. The strength came from single-family home construction which rose 2.7% while apartment building was unchanged.
Home building has been seeing strong gains since the summer as falling mortgage rates have helped to spur a rebound after more than a year of lagging activity.
Nonresidential construction was up 0.8% in January with spending in the category that includes shopping centers and religious centers showing some of the biggest gains.
Spending on government building projects 2.6% with spending by state and local governments rising 2% to an all-time high while spending by the federal government was up 9.9% to the highest level since May 2012.