Construction Spending Inches Up March

Washington, DC, April 30, 2007—Construction spending in March rose 0.2%, according to the Commerce Department. Construction outlays in February increased by 1.5% in, originally it was reported as having increased by 0.3%.

Economists had forecast an increase of 0.4% for March expenditures.

The increase in March was driven by outlays in private nonresidential projects. Spending on private nonresidential projects rose by 2.4%, while total private construction outlays climbed by 0.2%. Public construction spending rose by 0.4%.

Private residential construction fell by 1% in March, but followed a revised gain in February of 1.8%, the first gain after 10 straight months of declines.

Spending on federal construction projects, meanwhile, fell by 4.1% in March, following a drop of 7% in February.