US Construction Spending Rises More Than Anticipated In January

March 14, 2019
US Construction Spending Rises More Than Anticipated In January March 14, 2019 Lennox Hamilton

The US dollar strengthened against its peers following the release of a strong rise in public construction expenditure.

The USD/JPY pair hit a high of 111.62, from a low of 110.95. Likewise, the EUR/USD pair declined from a high of 1.1336 to a low of 1.1310.

Projecting a sharp rise in public building spending, the Department of Commerce published a report on Wednesday illustrating that US construction expenditure leaped far more than anticipated in January. The document said construction expenditure increased by 1.3% to an annualized rate of $1.280 trillion in January after slipping by 0.8% in December to a revised level of $1.263 trillion.

Economists had anticipated a 0.4% rise in construction expenditure compared to the 0.6% decrease published in the earlier month. In the meantime, updated data indicated a 1.3% drop in construction expenditure in November compared to the 0.8% rise earlier reported.

The higher than anticipated rise in building expenditure in December came as public building expenditure surged by 4.9% percent to $313.6 billion a year. Highway construction expenditure increased by 11.8% to $99.9 billion, while education expenditure leaped by 2.2% percent to $77.8 billion.

The study said personal construction expenditure soared by 0.2% to a rate of $964.2 billion, as an uptick in non-home construction expenditure was partly negated by a dip in residential construction expenditure. The Commerce Department reported a 0.3% increase in overall in in construction expenditure in January compared to the same period last year.

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