Construction spending fell in January as U.S. companies and the government scaled back on projects across the nation amid high interest rates.
Spending on construction projects fell 0.2% in January to $2.1 trillion, the Commerce Department reported Friday.Â
Construction spending is down for the first time since December 2022.Â
The figure fell short of expectations on Wall Street. Economists were expecting construction spending to rise 0.3% in January.
Construction spending reveals how much the government and private companies spend on projects such as housing and highways. The more the U.S. spends on construction, the higher the level of economic activity.Â
The government revised its figures for spending on construction in December to 1.1% from an initial read of a 0.9% increase.
Over the past year, construction spending is up 11.7%.Â
In terms of residential real estate, private residential construction rose 0.2% in January, with single-family construction rising 0.6% and multifamily construction falling 0.4%.
Spending on public residential construction rose by 1.9%.
Write to Aarthi Swaminathan at aarthi@marketwatch.com.Â
This story originally appeared on Marketwatch
