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Construction spending rises 0.1% in February, homebuilding falls 0.8%

Posted By Wayne Grayson On April 2, 2014 @ 2:10 pm In Aggbeat Online,News | No Comments

new home construction [1]

Construction spending in the U.S. ticked up 0.1 percent in February despite a decline in homebuilding, according to preliminary data from the Commerce Department.

Total spending rose in February to a seasonally adjusted annual rate of $945.7 billion from the revised January figure of $944.6 billion. Due to the revision of that figure, what was a 0.1-percent increase in January is now a 0.2-percent decrease from December.

February’s rate is 8.7 percent higher than February 2013.

Private nonresidential construction accounted most for the month’s increase with a 1.2-percent gain to $320 billion, led by a 3.5-percent gain in hotel construction at $16.7 billion.

Meanwhile, homebuilding fell to $360.3 billion. The 0.8 percent drop is the largest since July. The drop is thought by economists to be a temporary one as home construction is expected to remain a driver in the economy for the rest of the year.

Government construction spending rose 0.1 percent to $265.7 billion, led by a 5.1-percent gain in residential spending to $4.8 billion. Government nonresidential spending was flat.

Overall residential construction spending fell 0.7 percent to $365.2 billion. That figure is up 13.1 percent from the previous year.

Overall nonresidential spending rose 0.6 percent in February to $580.4 billion, up 6.1 percent year-over-year.

Editor’s note: Wayne Grayson is online editor for sister site Equipment World [2].

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[1] Image: http://www.aggman.com/files/2013/04/new-home-construction.jpg

[2] Equipment World: http://www.equipmentworld.com

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