U.S. construction spending rose strongly in January. On a sequential basis, construction spending was up 1.3 percent, making a solid beginning to the first quarter of this year. However, the print for December month was downwardly revised to a fall of 0.8 percent from a fall of 0.6 percent. This suggests a lower take-off point for construction activity, noted Barclays in a research report.
The rise was focused in the public construction sector, where spending was up 4.9 percent and solid readings were recorded for both residential and non-residential categories. The softness in the private sector was mostly focused in residential construction.
Downward revisions to private construction spending data for November and December lowered the take-off point for the first quarter estimate of residential and structures investment and together subtracted a tenth from the GDP tacker, stated Barclays. Nevertheless, this was countered by stronger than expected public construction spending, which stimulated the estimate of first quarter government spending, adding one tenth back to the tracker.
At 18:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was highly bearish at -106.368 more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
