Washington, DC, April 1--Construction spending rose 0.4 percent in February, according to a Commerce Department report.
Economists had forecast an increase of 0.6 percent in the gauge.
Construction put in place in February rose to a record $1.047 trillion, compared with a downwardly revised $1.044 trillion annual rate in January.
Private nonresidential spending, often seen as an indicator of business confidence, dropped 1.2 percent in February after striking a record high the previous month. February's decline was the largest monthly decrease since January 2004, when it fell 2.6 percent.
Overall residential spending, which makes up more than half of total construction outlays, rose 0.7 percent to a $586.2 billion annual pace in February.
Public construction spending rose 1.1 percent to a record $239.9 billion rate. Spending increases in sectors including commercial, educational and highway and street offset declines in transportation, office and conservation and development.
