January U.S. construction spending fell 0.1% over December, which was much weaker than the 0.8% gain expected by consensus, which is the first decline in six months. On a year-over-year basis, construction spending is up 7.1% over last January. The decline comes after strong readings the prior two months. December jumped 1.4% (revised from a 1.5% gain) and November surged 1.9% (revised from a more modest 0.4% gain). Residential construction spending rose 1.6% over December, offsetting the 0.8% drop in nonresidential construction. Public sector spending also fell 0.2% m/m in January. The January reading was much weaker than expected, and a disappointment, though the sharp November upward revision may help offset the bad news.