WASHINGTON - Construction spending dropped by a seasonally adjusted 0.7% in January as the level of private nonresidential spending hit the lowest level more than six years, the Commerce Department reported Tuesday.
Total construction spending for December was revised higher to a drop of 1.6%, up from a 2.5% decline reported last month.
January’s private construction fell for the second straight month, declining 1.2% following a 1.6% drop last month.
Private nonresidential construction, which includes commercial and manufacturing construction, fell 7.1% in January to $244.4 million, the lowest level since August 2004.
Economists expected spending to drop 0.4% for the month, according to the median estimate from Thomson Reuters.
Total public construction spending increased 0.1%. State and local spending fell 0.9%.
