Wednesday, May 1, 2013

Construction Spending Dropped 1.7% in March

Construction spending decreased 1.7% in March, the second decline in three months. Despite the weakness construction spending is still 4.7% above year-ago levels. March's report was revised up, while February's was revised down to 1.5% and -4.0% respectively.

Each component of construction spending deteriorated in March. Total private construction declined 0.4%, due to a 1.5% decrease in non-residential construction. Only private residential construction grew in March, a mere 0.4% compared to 2.3% in February.

Public construction saw the largest decrease as it declined 4.1% from the previous month. The public construction sector will likely continue the downward trend, as the impacts of sequester begin to show.

Read the Census report.

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