Overall spending on construction in January moved up 1.8% compared to December's totals thanks in large part to mild weather and low rates. By sector, spending on residential projects was up 2.0% month-to-month while nonresidential saw a 1.6% gain. Over the last 12 months, residential construction outlays has added 9.2%.

 

In the nonresidential sector, public spending grew by 2.6% boosted by federal expenditures, which added a 9.9% increase. Strong monthly spending on power, manufacturing and commercial projects lifted private nonresidential spending 0.8%.

The evaluation of these new numbers by the Wells Fargo Economics Group included the observation that "there may there may be some payback this spring," due to all the construction credited to warmer weather and "the coronavirus may soon push up material prices and hamper activity." On the other hand, "weakening financial conditions will likely keep mortgage rates low and further support activity," in the residential sector.