Large Increase In Transportation Projects Helps Fuel Slight Overall Gain In March

The slight increase in construction activity was driven by a 2.3 percent rise in public building projects, many of which are funded by the American Recovery and Reinvestment Act. Transportation spending in March shot up 12.4 percent compared to February.

Driven by public-sector contracts, construction spending rose in March for the first time in five months.

All strength in the construction industry came from government activity as private-sector building fell to the lowest level in 11 years. Weakness in construction is viewed by many economists as a major drag on the nation's economic recovery. Unfortunately this weakness also affects the landscape industry, slowing down the recovery process.

Overall construction activity increased by 0.2 percent in March (compared to the previous month) to a seasonally adjusted annual rate of $847.3 billion, the first monthly gain recorded since October, according to the Census Bureau.

- Courtesy of AASHTO