MISS: Construction Spending Falls 2.1%

Construction spending missed expectations falling 2.1 percent month-over-month (MoM) in January.

Analysts polled by Bloomberg are looking for construction spending to rise 0.4 percent month-over-month.

Last month's reading was revised up to reflect a 1.1 percent MoM rise.

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Construction spending was up 7.1 percent on the year.

Private residential constriction was flat from December levels, while public residential construction was down 0.7 percent on the month. Overall residential construction was flat. This comes after data out this month shows that housing supply is already tight.

The decline however was led by nonresidential power spending which was down 12.4 percent from last month.

Investors watch this number because it offers insights into the housing market and therefore insights into homebuilder stocks. It also gives us an insight into the health of the overall economy because businesses and governments invest in new infrastructure when they are feeling confident about the economy.