2021.05.0314:51:00UTC+00U.S. Construction Spending Inches Up Much Less Than Expected In March

With a jump in spending on residential construction partly offset by decreases in spending on non-residential construction and public construction, the Commerce Department released a report on Monday showing U.S. construction spending rose by much less than expected in the month of March.

The report said construction spending inched up by 0.2 percent to an annual rate of $1.513 trillion in March after falling by 0.6 percent to a revised rate of $1.510 trillion in February.

Economists had expected construction spending to spike by 2.0 percent compared to the 0.8 percent drop originally reported for the previous month.

The uptick in construction spending came as spending on residential construction surged up by 1.7 percent to an annual rate of $725.2 billion.

On the other hand, the report showed spending on non-residential construction slid by 0.9 percent to an annual rate of $444.0 billion.

Spending on public construction also tumbled by 1.5 percent to an annual rate of $343.9 billion, reflecting steep drops in spending on both educational and highway construction.

Compared to the same month a year ago, total construction spending in March was up by 5.3 percent.