WASHINGTON (AFX) - Overall construction spending fell twice as fast as expected in January as home building fell for the tenth straight month to its lowest level in two and a half years, the Commerce Department said today.

Construction spending fell by 0.8 pct in January to 1.18 trln usd, the lowest level since October 2005. Economists had expected overall construction spending to fall 0.4 pct in the month.

The decline was led by a 1.8 pct plunge in private residential construction, which fell for the tenth consecutive month to a seasonally adjusted annual rate of 575.4 bln usd. That’s the longest streak of declines on record and the lowest level of private home building since July 2004.

The overall drop was tempered by spending on public construction, which rose by 0.6 pct in January to 286.0 bln usd.

Meanwhile, total spending on private non-residential construction was 318.9 bln usd in January, essentially unchanged from December.

The department said total construction spending rose a revised 0.6 pct in December, compared with the earlier estimate that construction spending fell by 0.4 pct in the month. In the past nine months, December is the only month overall construction spending has posted a gain.

newsdesk@afxnews.com

tfn-was-cbd/wash/jkm

COPYRIGHT

Copyright AFX News Limited 2007. All rights reserved.

The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.

AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited

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