WASHINGTON - Construction spending unexpectedly increased 0.2% in March to a seasonally adjusted annual rate of $847 billion, as public construction increased by the largest amount in 13 months, the Commerce Department reported today.
The March increase in construction spending broke a string of four consecutive monthly declines.
Private construction fell 0.9% to $550.8 billion, the lowest level since January 1999. Private nonresidential construction fell for the 12th consecutive month, dropping 0.7% in March. Residential spending fell 1.1%, the second straight monthly decline.
Economists expected construction spending would fall 0.3% for the month, according to the median estimate from Thomson Reuters.
February’s construction spending was revised to a drop of 2.1% from a 1.3% decline initially reported. Spending in January decreased 0.7%, revised from the 1.4% decline reported last month.
Public construction increased 2.3% in March to $296.5 billion, the largest increase since February 2009. State and local construction spending increased 2.5% and federal spending increased 0.3%.
During the first three months of 2010, construction spending totaled $179.9 billion, 14% below the first quarter period of 2009. The March total construction spending figure was 12.3% below spending in March 2009.
