US construction spending drops sharply

Spending on U.S. construction projects fell in January by the largest amount in 18 months as home construction stalled and spending on government projects plunged to the lowest level in more than six years, the government said Friday. The decline was considered temporary, however, with construction expected to increase this year. The Commerce Department reported that construction spending fell 2.1 percent in January following a 1.1 percent increase the previous month. It was the biggest monthly decline since July 2011. Residential building, which has been leading the rebound in the construction sector, stalled in January, with no gain in activity, following a 1.7 percent advance in December. Non-residential building fell 5.1 percent, while public construction was also down 5.1 percent, pushing activity in the government sector to the lowest level since November 2006.