According to information by the Commerce Department, construction spending in March rose only marginally, failing to meet expectations, mainly due to outlays on public projects falling for a fifth month in a row.
Spending rose by “0.2 percent to an annual rate of $942.5 billion”. Furthermore, “construction spending in February was revised to show a 0.2 percent drop instead of the previously reported 0.1 percent gain.”
Even though economists had forecast that construction outlays would increase by 0.5 percent in March, outlays on public projects actually dropped by 0.6 percent. Thus, “public construction spending hit its lowest level since November 2006.” Federal government spending fell by 2.4 percent, while state and local government spending declined 0.4 percent.
Private construction spending, on the other hand, marked an increase of 0.5 percent in March and is currently at its highest level since December of 2008. Nonresidential construction spending is up 0.2 percent.
Read the full article at Reuters.