Construction spending in January unexpectedly fell by 0.1 percent, as commercial building projects fell sharply throughout the month. This is the first time spending has dropped in six months, reports The Associated Press.
To keep things in perspective, the key reason that the numbers fell was due to a revision of December's originally reported numbers. The first report by the Commerce Department said that spending rose 0.4 percent in December, but that was later revised to a 1.9 percent increase. So while January outpaced December's original numbers, it fell just shy of the revised figures. It's entirely possible that January will actually result in an increase if the figures need to be revised again.
Residential construction actually rose by 1.8 percent, but it was dragged down by the decrease in hotels, power plants, factories and other commercial properties.
Despite the slight drop, construction company owners still have it much better than they did six months ago. Those who are trying to make ends meet should remember that they can keep costs down by buying used construction equipment online through IronPlanet.
