Construction Spending Stronger Than Anticipated

Washington, DC, April 1, 2008–Construction spending was stronger than expected in February, according to the Commerce Department.

The Commerce Department said total spending fell just 0.3 percent after a revised 1.0 percent decline in January, although it was the fifth straight monthly decline.

Total private construction was down 0.5 percent for February following a revised 1.5 percent fall in January.

Residential was construction down 0.9 percent. It was also off 18.6 percent compared to a year ago.

Business construction declined 1 percent as there was weakness in office and power projects. However, there was strength in commercial and manufacturing buildings.

However, economists are predicting a significant downturn in non-residential building for the coming months.

Public construction was up 0.4 percent for the second consecutive month.