U.S. construction projects spending rises

Spending on U.S. construction projects rose 1.7% in January as new home building continues to lift the sector.

Last month’s increase followed small revised gains in December and November. Spending on residential construction rose 2.5% in January, with single family home projects up 3%, the Commerce Department reported Monday.

Last week, the Commerce Department reported that sales of new homes jumped 4.3% in January, and are 19.3% higher than they were last year at this time.

In a separate report, the government reported that applications for building permits, which typically signal activity ahead, spiked 10.4% in January. Spending on government projects, which has been constrained by tight state and local budgets in the wake of the pandemic, rose 1.7%.