A slight improvement in private sector construction spending overcame declines in public outlays, leading to a 0.2 percent increase in the construction spending annual rate from February to March. The spending rate, which totaled $942.5 billion, was 8.4 percent higher than March 2013, but economists were expecting larger gains to follow the winter slowdown.

Overall construction spending increased slightly in March, as public and private construction combined for a seasonally adjusted annual rate of $942.5 billion, 0.2 percent above the revised February estimate of $940.8 billion and 8.4 percent above the March 2013 estimate of $869.2 billion.

The private sector provided the upward bump, as spending in March rose to a seasonally adjusted annual rate of $679.6 billion, 0.5 percent above the February rate of $676.3 billion. The March rate was a 12.5 percent year-over-year increase; private sector spending was estimated at $604.02 billion in March 2013.

According to a March 1 Commerce Department report, year-to-date (first quarter) spending in the private sector was also 12.5 percent higher than in March 2013, $145.19 billion to $129.07 billion. Total construction spending in the first quarter totaled $196.6 billion, an 8.3 percent increase over the same period in 2013, when spending was estimated at $181.6 billion.

Private residential construction spending was at a seasonally adjusted annual rate of $369.8 billion in March, 0.8 percent above the revised February estimate of $367.0 billion, and 16.0 percent higher year-over-year. Year-to-date residential spending was up 16.7 percent from a year earlier to a non-seasonally adjusted $74.67 billion compared to $63.98 billion.

Single-family residential construction was $185.66 billion, 13.2 percent higher than a year earlier and 0.2 percent higher than in February.

Construction in residential buildings of five or more units reached a seasonally adjusted annual rate of $39.15 billion and was 4.4 percent higher than in February and 32.5 percent above expenditures at the same time in 2013.

Public sector construction was at a seasonally adjusted annual rate of $262.92 billion, down 0.6 percent from February and 0.8 percent from March 2013. Residential construction totaled $4.7 billion and was down 6.6 percent month-over-month and 26.7 percent from one year ago.