MAR. CONSTRUCTION SPENDING DOWN 1.1%
The value of new construction spending fell 1.1% in Mar., more than analysts expected and driven by a 4.6% drop in private residential construction — the largest decline since the start of the series in Jan-93.
A 1.9% gain in private nonresidential construction and a 0.6% rise in public construction was not enough to offset that drop.
Construction spending for Feb. was revised to a 0.4% rise, previously reported as down 0.3%.
Overall, private sector construction declined by 1.7%, weighed by the record decline in residential construction. Private nonresidential construction showed strong increases in lodging and communications structures.
Commercial construction declined 1.2%, but office construction was still increasing, up 1.9% for Mar. Manufacturing and construction for power facilities were up over 1% each.
Public construction increased 0.6% overall as a 0.7% increase in state and local construction offset the 2.1% decline in federal government construction.
Street and highway construction rose 0.8% but the other large category, construction of educational facilities, slowed to a 0.3% increase. Construction of public power facilities declined 2%.