Construction Spending Tumbles but Commercial OK

Washington, DC, May 1, 2008--U.S. construction spending fell 1.1 percent in March after February was revised sharply higher, a Commerce Department report showed on Thursday. Private home building suffered a record decline.

Analysts polled by Reuters forecast construction spending to fall 0.6 percent in March after an upwardly revised 0.4 percent increase in February. This had previously been reported as a 0.3 percent decline.

At an annual rate of $1.124 trillion, construction spending fell to its lowest reading since June 2005.

Private home building fell by a record 4.6 percent. However, private nonresidential construction spending, which advanced by 1.9 percent, hit an adjusted annual rate of $382 billion.