Washington, D.C., May 2 -- U.S. construction spending grew faster than antcipated in March, reaching a record level as nonresidential construction spending showed a particularly sharp increase, according to the Commerce Department.
In March, total spending increased 0.5% to a seasonally adjusted record-high annual rate of $1.052 trillion. Spending rose a revised 0.5% in February compared with the previously reported 0.4%. January spending growth was revised to 0.4% from the previously reported 0.6%.
Wall Street had expected March construction spending to rise 0.3%.
With economic growth slowing in the first quarter, recent data on the housing market has offered mixed signals whether the residential real estate boom is cooling. Housing starts in March plunged 17.6%, their sharpest drop in 14 years. But new home sales surged 12.2% during the month, their sharpest rise in 11 years.
Monday's data showed residential construction spending climbed by 0.3% to a seasonally adjusted annual rate of $592.8 billion, after a revised 1.1% increase in February previously reported as a 0.7% gain.
Non-residential construction spending rose 0.7% in March, follwing a revised 0.3% drop in February previously reported as unchanged.
Total private construction rose 0.5% to a seasonally adjusted annual rate of $815.5 billion, after a revised 0.4% advance in February. Outlays rose for manufacturing, religious, office and lodgin buildings, but they fell for power, communications and transportation facilities.
Public construction spending climbed 0.3% to $236.3 billion after a 0.7% advance the prior month. Federal government construction outlays fell in March by 2.4%, while state and local spending - much larger than federal spending in dollars - climbed 0.5%.
