The Commerce Department announced on Monday that construction spending surged 1.7 percent m-o-m in January 2021 after a revised 1.1 percent m-o-m gain in December 2020 (originally a 1.0 percent m-o-m advance). This was the largest monthly increase in construction spending since October 2020.

Economists had forecast construction spending rising 0.8 percent m-o-m in January.

According to the report, spending on private construction jumped 1.7 percent m-o-m, while investment in public construction also surged 1.7 percent m-o-m.

On a y-o-y basis, construction spending rose 5.8 percent in January.