The spending declined in both the 17-member eurozone and the 27-member European Union.
Construction outlays in the eurozone dropped 0.8 percent in January after falling 1.9 percent in December from November. In the EU, outlays for construction projects dropped 4.1 percent after dropping 3.8 percent a month earlier.
From January 2011, construction outlays are down 1.4 percent in the eurozone and 1 percent in the EU.
Eurostat said construction spending fell sharpest month-to-month in the Czech Republic where it was down 20.1 percent. In Britain, one up from the bottom of the list, construction spending dropped 13.8 percent.
Construction spending rose sharpest in Slovenia (17.4 percent), Germany (4.3) and Portugal (2.5).