Construction Spending Up Most in 11 Months

Washington, DC, May 2, 2011 -- U.S. construction spending in March posted the largest gain in 11 months, according to the Commerce Department.

The government said construction spending increased 1.4% to an annual rate of $768.9 billion, reflecting gains in private residential and nonresidential spending.

Economists expected spending to rise 0.4% in March.

Private construction spending in March rose 2.2% as investment in residential projects increased 2.6% to $229.1 billion.

Private nonresidential spending rose 1.8%. Public construction spending inched up 0.1%.