MNI DATA ANALYSIS: US Construction Spending Flat In January>

--Private Nonresidential Spending -1.5%; Residential +0.3%

--Public Construction Spending Up 1.8%

--Total Construction Spending Highest Level On Record

By Holly Stokes and Sara Haire

     WASHINGTON (MNI) - Construction spending was flat in January, 

falling short of the expected 0.3% gain, this was mainly due to private 

construction seeing a 0.5% decline while public construction was able to 

negate the decline with a 1.8% rise, data released by the Commerce 

Department Thursday morning showed. 

     Analysts surveyed by MNI had expected total construction spending 

to rise by 0.3%, adding to December's 0.7% rise. However, with the 

latest data, December construction was revised up 1pp to a 0.8% gain, 

while November was revised up to a 1.2% increase from the 0.6% increase 

previously reported. 

--TOTAL PRIVATE SPENDING DOWN

    Private nonresidential construction saw a 1.5% decline in January. 

The categories were mixed, with increases in lodging, amusement and 

recreation, transportation, communication, and manufacturing. These 

were unable to offset the large declines in power (-6.2%), commercial 

(-2.7%), office, healthcare, education, and the religious category. 

     Private residential construction spending was up 0.3% in the month, 

while home building ex. new homes, also known as remodeling, rose 0.2% 

according to an MNI calculation. New homes saw a 0.3% rise, also based 

on an MNI calculation. Single-family building registered an increase of 

0.6%, while multi-family building posted a 1.3% decrease from December. 

--PUBLIC SPENDING UP

     Public construction spending saw a 1.8% gain in January following a 

sharp upward revision to a 1.8% gain in December from the 0.3% rise 

previously reported. 

     The gain in public construction reflected a 14.9% surge in Federal 

Government spending, jumping to the highest level seen since September 

2011. State and local building also added to the large gain, albeit 

softer than Federal Government spending, with a 0.5% increase in the 

month. 

      ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$,MAUDR$,MT$$$$]