March Construction Spending Rises

WASHINGTON D.C. - Construction spending rose slightly in March according to a report released Monday by the Commerce Department.

March spending clocked in at an annual rate of $1.051 billion, 0.5 percent above the revised February estimate of 1.046 billion. The March figure is eight percent above the March 2004 estimate of $974 billion. During the first three months of 2005, construction spending amounted to $224.4 billion, 9.3 percent above the $203.5 billion for the same period in 2004.

?EUR??,,????'??For the first quarter of 2005 as a whole, construction exceeded the first-quarter 2004 total by nine percent. Furthermore, the gains were widespread. Private residential construction was up 13 percent over the year-ago quarter, private nonresidential was up seven percent and public construction was three percent higher,?EUR??,,????'?? Associated General Contractors of America's (AGC's) Chief Economist Ken Simonson said. ?EUR??,,????'??I expect these results to continue for several more months, with both private and public nonresidential construction likely to strengthen further, offsetting a likely slackening of residential construction later in the year.

Spending on private construction was at a seasonally adjusted annual rate of $815.5 billion, 0.5 percent above the revised February estimate of $811.3 billion. Residential construction was at a seasonally adjusted annual rate of $585.3 billion in March, 0.3 percent above the revised February estimate of $583.6 billion. Nonresidential construction was at a seasonally adjusted annual rate of $230.3 billion in March, 1.1 percent above the revised February estimate of $227.7 billion.

Public construction spending in March was recorded at $236.3 billion, 0.3 percent above the revised February estimate of $235.6 billion. Educational construction was at a seasonally adjusted annual rate of $63.9 billion, 0.4 percent above the revised February estimate of $63.7 billion. Highway construction was at a seasonally adjusted annual rate of $69 billion, 0.4 percent below the revised February estimate of $69.3 billion.

?EUR??,,????'??There were some big winners in the first quarter,?EUR??,,????'?? Simonson said. ?EUR??,,????'??Manufacturing construction soared 31 percent and communication leaped 26 percent, after years of falling activity. Lodging jumped 16 percent, thanks to higher occupancy and room rates at hotels and higher attendance at business meetings and conventions. The broad commercial category climbed nine percent, led by a 19 percent rise in multi-retail construction such as 'big-box' stores and shopping centers. Warehouse construction, which had lagged for years, rose 11 percent, reflecting a recent rise in inventories. For a change, multi-family construction edged out single-family, 16 percent to 14 percent.?EUR??,,????'??