Construction Spending Stronger Than Anticipated

Washington, DC, April 1, 2008--Construction spending was stronger than expected in February, according to the Commerce Department.

The Commerce Department said total spending fell just 0.3 percent after a revised 1.0 percent decline in January, although it was the fifth straight monthly decline.

Total private construction was down 0.5 percent for February following a revised 1.5 percent fall in January.

Residential was construction down 0.9 percent. It was also off 18.6 percent compared to a year ago.

Business construction declined 1 percent as there was weakness in office and power projects. However, there was strength in commercial and manufacturing buildings.

However, economists are predicting a significant downturn in non-residential building for the coming months.

Public construction was up 0.4 percent for the second consecutive month.