Construction spending rises 0.7 percent in January

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Tuesday, March 1, 2005 | 8:54 a.m.

WASHINGTON -- Construction spending rose a strong 0.7 percent in January as low mortgage rates continued to bolster home building and nonresidential construction climbed to the highest level in more than two years.

The increase, reported today by the Commerce Department, pushed total construction activity to a record high of $1.05 trillion at a seasonally adjusted annual rate and followed an even larger 1.2 percent rise in December.

The strength in January reflected a 0.6 percent increase in private construction, which included a 0.4 percent rise in residential activity and a 1.2 percent jump in nonresidential building.