WASHINGTON – U.S. construction spending rose to a more than an 8-year high in March, according to data released this week by the Commerce Department. The positive outlook included an upward revision to February’s expenditures, indicating sustained growth throughout much of the sector.
The latest monthly data shows that construction spending increased 0.3% to the highest level since October 2007, following an upwardly revised 1% uptick in February. However, construction spending for January was revised down to show a 0.3% drop instead of the previously reported 2.1% increase.
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During the first three months of this year, construction spending amounted to $240.4 billion, 9.1% above the $220.3 billion for the same period in 2015. All told, the Commerce Department noted construction spending rose 8% year-over-year.
In March, spending on private construction was at a seasonally adjusted annual rate of $842.3 billion, 1.1% above the revised February estimate of $832.8 billion. Residential construction was at a seasonally adjusted annual rate of $435.5 billion, 1.6% above the revised February estimate of $428.8 billion. Nonresidential construction was at a seasonally adjusted annual rate of $406.8 billion, 0.7% above the revised February estimate of $404 billion.
The report indicated spending on public construction fell by 1.9% in March to a rate of $295.2 billion. Spending on federal construction fell 7.4% to a rate of $21.3 billion, while spending on state and local construction slid 1.4% to a rate of $273.9 billion.
