MNI DATA IMPACT: US January Construction +1.3%, Above Exp>

--Private Residential Spending -0.3%; Nonresidential +0.8%

--Public Construction Spending +4.9%

By Shikha Dave and Harrison Clarke

     WASHINGTON (MNI) - Construction spending was up 1.3% in January, 

well above the 0.3% gain expected by MNI, as public construction posted 

its largest gain since September 2010. Private residential declined 

0.3%, while nonresidential rose by 0.8%, data released by the Commerce 

Department Wednesday morning showed. 

     Analysts surveyed by MNI had expected total construction spending 

to rise by 0.3% after a 0.8% decrease in December, while the Bloomberg 

consensus expected a 0.4% gain. November was revised sharply down to a 

1.3% decline from a 0.8% gain previously reported.   

Here are the key takeaways from the release:

     -Private residential construction fell by -0.3% in the month, 

following a 1.9% drop in December. Home building ex. new homes, also 

known as remodeling, saw a 0.3% decrease, according to an MNI 

calculation. Also based on an MNI calculation, total new homes fell by 

0.3%. Single-family building fell by 0.7%, while multi-family building 

posted a 1.4% increase. 

     -In addition to the decrease in private residential, private 

nonresidential construction rose by 0.8% in January, driving the 

increase in total private construction. The main drivers of the category 

were increases in transportation (+6.8%), commercial (+1.5%), and 

education (+3.3%). 

     -Following a downward December revision to a 1.0% decrease from a 

0.6% decline, public construction spending rose by 4.9% in January, the 

highest since September 2010. The rise in public construction was driven 

by a 11.8% rise in highway and street, a 4.0% gain in residential, and a 

12.1% increase in commercial. This was partially offset by small 

declines in some other categories. State and local construction was up 

4.9% in the month, its largest increase since July 2009. Federal 

construction was up 4.2%. 

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

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