Another Record ... Construction Spending Digs Through

In historical levels, construction spending reached its highest levels on record in March, increasing 1.5% from February?EUR??,,????'???s revised, seasonally-adjusted level of $930.0 billion to $944.1 billion, according to a report from the Census Bureau.

Construction rose by three times the amount predicted by some economists, who expected a 0.5% increase in March. Total private construction elevated 0.4% from February, and total public construction rose 5.2%.

Meanwhile, an accelerating economy is raising chatter of a hike in the 45-year-low federal funds rate, or the rate banks charge each other for overnight loans. This could indirectly affect mortgage rates, raising them above the record low levels that have held since last summer.

The highest percentage increases in construction outlays fell upon the public residential sector, which saw an 11.8% increase, while private residential construction only rose 0.7%. Public power construction increased by a rate of 15.6%, and total conservation and development jumped 6.8%. The largest loss in construction spending was exhibited in the communications industry, which witnessed a 7.0% decrease in outlays.

Seasonally adjusted estimates

Type of Construction	Spending Billions of Dollars (Mar. '04)	% Change From Feb. 2004	% Change From Mar. 2003
Total	944.1	+1.5	+7.9
Private Construction	722.4	+0.4	+8.0
Private Residential	507.2	+0.7	+13.4
Public Construction	221.7	+5.2	+7.4
Education (Public)	58.6	+2.0	+2.0
Education (Private)	13.1	+2.5	+2.3
Lodging (Total)	10.9	+6.4	-0.8
Public Office	43.8	+3.7	+11.4
Public Highway	66.4	+9.8	+13.7
Public Housing	5.6	+11.8	-1.5
Private Health Care	24.2	+4.0	+0.1