The Commerce Department announced that construction spending dropped 0.6 percent to $884.1 billion during the month, after falling by an unrevised 1.2 percent in December. Construction spending fell 9.3 percent in the 12 months ended in January.

Private nonresidential spending during the month of January fell to $316.4 billion which is 2.1 percent below the revised December estimate of 323.2 billion. This was lowest level since November 2006 and was the tenth consecutive month of decline.

Residential construction was at a seasonally adjusted annual rate of $260.8 billion in January, up by 1.3 percent the revised December estimate.

Public construction spending in January was to $306.9 billion which was 0.7 percent below December estimate of $308.9 billion. Highway construction was at a seasonally annual rate of 83.5 billion, 1.2 percent above the revised December estimate. Educational construction was at a seasonally adjusted annual rate of 70.3 billion or about the same as the December estimate.