WASHINGTON (AP) - Personal incomes rose in January at the fastest clip in a year, bolstered by bonus payments to high-income executives, but construction activity fell sharply as the nation’s housing industry continued to suffer through tough times.

The Commerce Department reported Thursday that personal incomes rose by 1 percent in January while consumer spending was up by 0.5 percent. The income advance was the largest since a 1.3 percent jump in January 2006 and both the income and spending gains were bigger than had been expected.

However, in less upbeat news, the government said that construction activity fell by 0.8 percent in January, double the decline that analysts had been expecting.

The weakness was led by a 1.8 percent plunge in spending on housing construction. It was the 10th consecutive fall in residential construction and a further sign of the steep slowdown in the once-booming sector, a slowdown which has depressed overall economic activity.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

For more information and to contact AFX: www.afxnews.com and www.afxpress.com