02.03.202015:29:00UTC+00U.S. Construction Spending Jumps Much More Than Expected In January

Construction spending in the U.S. jumped by much more than expected in the month of January, according to a report released by the Commerce Department on Monday.

The Commerce Department said construction spending surged up by 1.8 percent to an annual rate of $1.369 trillion in January after inching up by 0.2 percent to a revised rate of $1.346 trillion in December.

Economists had expected construction spending to climb by 0.7 percent compared to the 0.2 percent dip originally reported for the previous month.

The bigger than expected spike in construction spending reflected sharp increases in both private and public construction spending.

Spending on private construction shot up by 1.5 percent to an annual rate of $1.023 trillion, as spending on residential construction soared by 2.1 percent and spending on non-residential construction increased by 0.8 percent.

The report said spending on public construction also jumped by 2.6 percent to an annual rate of $346.5 billion, with spending on highway construction skyrocketing by 5.4 percent.

The Commerce Department said total construction spending in January was up by 6.8 percent compared to the same month a year ago.