Construction spending falls again

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Construction spending fell for a third straight month in January as a slight rebound in housing was not enough to offset
widespread weakness in a number of commercial areas from office buildings to hotels.

The trouble that builders are facing will likely weigh on overall economic activity in coming months.

The Commerce Department said Monday that construction spending dropped 0.6 percent in January, a decline that was slightly
smaller than the 0.7-percent drop that economists had expected.

Housing construction rose 1.3 percent although that gain could be temporary given the weakness seen in sales of both new
and existing homes in January. Spending on non-residential projects fell by 2.1 percent.

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