Your Economy (No Politics)

[Bullwinkle]

U.S. Jan. construction outlays rise 0.2%
Wednesday, March 1, 2006 3:27:37 PM
http://www.afxpress.com


WASHINGTON (AFX) - Outlays on U.S. construction projects increased a lower-than-expected 0.2% in January, the Commerce Department said Wednesday

It was the smallest growth in construction spending since June. Outlays increased 1% in December

Economists surveyed by MarketWatch were expecting seasonally adjusted outlays to rise 1.3%, figuring that the warmest January on record would spur construction activity. Housing starts, for instance, increased 14.5% in January

But the warm weather didn't show up in the broader construction spending data released Wednesday. Spending on private-sector projects increased 0.2%, as did spending on public-sector construction

Spending on private-sector residential projects increased 0.1%, the smallest gain since June

In the past year, construction outlays are up 7.4%. The figures are not adjusted for price changes

Within the private sector, an 8.7% increase in spending on communications facilities was offset by a 1.4% drop in manufacturing and a 0.6% decline in power. Spending on offices fell 0.2%. Spending on commercial space rose 0.4%

In the public sphere, the 0.9% increase in spending on highways and streets accounted for the gain. Spending on schools fell 0.8%. In other reports released Wednesday, the Commerce Department said inflation eroded most of the income gains for U.S. residents in January, with real disposable incomes up 0.1%. Real consumer spending rose 0.4%

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