WASHINGTON - Construction spending rose 0.3% in March, slightly below the 0.4% rise expected, data released by the Commerce Department Monday morning showed.
The revised percent changes for January and February were offsetting, with January now down 0.3% and February now up 1.0%. However, the levels of both months were revised down sharply, while the levels in the previous quarter were not. As a result, fixed investment may see a sharp downward revision in the first quarter from its already dismal showing in the advance estimate.
Private residential spending was up 1.6% in the month, with new home building up 1.2% based on an MNI calculation. Single-family building was down flat, while multi-family building posted a 5.6% rise.
In addition, residential construction excluding new homes, which captures home remodeling, rose 2.4% in March after a 1.6% gain in February, according to an MNI calculation.
Nonresidential private construction rose 0.7% on widespread gains, with manufacturing construction up 2.2% and commercial construction up 0.8%. However, office construction fell 0.8%, while power construction was down 1.8%.
Public construction fell 1.9% in March. State and local government spending, the much larger portion of public construction, fell 1.4% after a 0.4% gain in February, while Federal Government construction plunged 7.4% after a 0.3% decline in the previous month.
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