Construction spending falls in January

Construction spending fell during January.

The level of construction spending throughout the commercial real estate market dropped during the first month of the year, which may affect some property management companies.

Total construction spending fell 2.1 percent to a rate of $883.3 billion in January, a report from the Department of Commerce explained.  The previous month's figure was $902.6 billion. There was a gain year-over-year of approximately 7 percent, as January 2012 had a figure of $824.7 billion.

Nonresidential construction totaled a rate of nearly $310 million to start the year, which was more than 5 percent lower than the previous month's rate of $326.2 billion, the report noted. Total private construction also dropped, as it was more than 2.5 percent lower in January than the previous month. January's total rate was close to $614 billion.

Despite a drop in spending, the level of architecture billings improved during the month. The Architecture Billings Index from the American Institute of Architects rose to a mark of 54.2 during the month, from the previous month's level of 51.2. Any figure higher than 50 showed the level of architecture billings was improving.

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