WASHINGTON — Construction spending was up 1.0% in February, well above the 0.1% gain expected by MNI and the 0.1% decline expected by the Bloomberg consensus, as private residential construction rose 0.7%, data released by the Commerce Department Monday morning showed.
Private residential construction rose by 0.7% in the month, following a 1.8% gain in January. Home building ex. new homes, also known as remodeling, saw a 3.6% increase, according to an MNI calculation. Also based on an MNI calculation, total new homes fell by 1.0%. Single-family building fell by 1.1%, while multi-family building posted a 0.4% decrease.
In contrast to the increase in private residential, private nonresidential construction fell by 0.5% in February, partially offsetting the increase in total private construction. The main drivers of the category were transportation (-7.0%), commercial (-0.8%), and educational (-4.4%).
Following an upward January revision to a 5.7% increase from a previously reported 4.9% gain, public construction spending rose by 3.6% in February to an all-time high. The gain in public construction was driven by a 9.5% gain in highway and street, slightly offset by health care and commercial construction. State and local construction was up 3.8% in the month, also to an all-time high. Federal construction rose by 0.9%.
