P.M. Briefing : Construction Spending Rises 0.4%

Construction spending rose 0.4% in January, led by a strong increase in work on nonresidential projects such as factories, offices and motels, the government said today.

Building activity rose to a seasonally adjusted annual rate of $424 billion in January, following a 2.1% increase in December and a 1.3% jump in November. January’s 0.4% increase was the weakest performance since a 0.3% rise last October. Rising interest rates have dampened activity in most sectors, with fixed-rate mortgages averaging 10.78% last week compared with 9.87% a year earlier.