THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, March 2, 1995 TAG: 9503020439
SECTION: BUSINESS PAGE: D6 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: WASHINGTON LENGTH: Short : 41 lines
Construction spending slipped 0.2 percent in January, the first decline in six months, led by a drop in outlays for interest-sensitive single-family homes.
The Commerce Department said Wednesday that spending on residential, nonresidential and government projects totaled $529.7 billion at a seasonally adjusted annual rate.
Spending totaled a revised $530.9 billion in December, when outlays rose 1.1 percent. The initial December estimate was $530 billion.
The January drop still left overall outlays 8.4 percent above those of a year ago. The last time construction spending fell was in July, when it was off 0.1 percent.
Residential spending, nearly half of overall construction outlays, was down 0.5 percent in January to a $242.8 billion rate.
The decrease included a 0.8 percent drop in spending on single-family housing, which rose 0.3 percent in December. Single-family outlays are highly sensitive to mortgage rate changes.
Spending on apartments and condominiums edged up 0.6 percent, after climbing 4.3 percent in December.
Private, nonresidential spending rose 3 percent in January to a $109.4 billion rate after rising 0.6 percent a month earlier.
Most categories posted gains, including a 3.5 percent jump in industrial outlays such as factories. Spending on hotels and motels rose 17 percent. For other commercial property such as shopping centers, spending was up 2 percent.
Government outlays increased 0.7 percent to a $136.7 billion rate, after surging 3.1 percent in December. by CNB