Construction Spending Falls on Commercial Downturn

Construction spending fell 0.7% in January, led by a drop in commercial projects, the Commerce Department reported Tuesday.

The decline to a $791.8 billion annual rate followed a 2.5% drop in December. The downturn was led by a 6.9% decline in commercial projects, the biggest drop in 17 years.

Economists had forecast a 0.4% decline in construction spending, Bloomberg reported.

Private construction spending fell 1.2%. Homebuilding spending rose 5.3%, including an 11% increase in home improvement. Federal construction spending jumped 9.1%.

Construction spending can boost demand for trucking services because spending increases the number of shipments of goods and building materials.