Highlights
Housing construction improved in January but was offset by declines in outlays on nonresidential and public components. Construction spending in January slipped 0.1 percent, following a 1.4 percent increase the prior month (originally up 1.5 percent). Analysts forecast a 1.0 percent increase.

The decline in January was led by a 1.5 percent decrease in private nonresidential outlays after a 2.1 percent gain the month before. Public outlays dipped 0.2 percent after a 0.7 gain in December. Residential spending advanced 1.8 percent after a 1.5 percent boost the prior month, reflecting recent gains in housing starts.

On a year-ago basis, overall construction posted a gain of 7.1 percent in January, compared to 5.7 percent the prior month.

The January number was disappointing but follows recently healthy gains. While not robust, construction still appears to be on a modest uptrend.

Market Consensus before announcement
Construction spending in December jumped another 1.5 percent after a 0.4 percent increase the month before. The boost in December was led by a 3.3 percent surge in private nonresidential outlays after a 0.5 percent dip the month before. Residential spending rebounded 0.8 percent after a 0.3 percent decline. Public outlays rose 0.5 percent, following a 1.7 percent boost in November. Looking ahead, the residential component of January outlays should be strong based on recently healthy increases in housing starts.

2012 Release Schedule

Released On: 1/3 2/1 3/1 4/2 5/1 6/1 7/2 8/1 9/4 10/1 11/1 12/3 Release For: Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct