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Construction Spending Flat in February04-08-14 | News
Construction Spending Flat in February





Construction spending edged up 0.1 percent to an annual rate of $945.7 billion in February, according to an April 1 Commerce Department report. January spending was revised downward, showing a 0.2 percent drop instead of the previously reported 0.1 percent gain. In spite of the winter slowdown, building outlays in January and February are up almost 9 percent from the first two months of 2013.
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Spending on residential construction products recorded the biggest decline in seven months in February, but overall construction spending managed to rise slightly as winter weather continues to vex the industry.

A 1.1 percent drop in single-family home building, the largest fall since last July, spurred a 0.8 percent drop in private residential construction projects. In contrast, a 1.2 percent surge in spending on nonresidential construction projects, which include factories and gas pipelines, lifted overall private outlays to their highest level since December 2008.

Public construction spending nudged up 0.1 percent in February, with a 5.8 percent jump in federal government outlays that offset a 0.5 percent fall in state and local government spending. State and local spending is responsible for the majority of public construction outlays.

The nonresidential building sector has continued to make quiet gains since the nadir of the recession. Spending on private commercial projects is up 13 percent year-over-year, and communication projects and lodgings have increased 51.5 percent and 40 percent respectively over the same period.








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