U.S. Construction Spending Down
US builders spent less on construction in February than expected, according to figures released Friday by the Commerce Department, indicating the broader economic recovery has not yet trickled down to the nation's building industry. The agency reported that construction declined 1.4 percent from the prior month, with the total spent on all projects across the nation falling to an annual rate of $760.6 billion, the slowest pace since October of last year.
Economists participated in a recent Bloomberg News survey had projected that construction would decline, but only by 0.2 percent, on average. Outlays on home building, meanwhile, fell during the month as prices continued to fall for both new and used homes. Construction was also limited by funding restrictions for public works projects affecting cash-strapped state and local governments.
The report, combined with reports on falling home prices and sales, indicate the US housing market still has a long way to go. A number of analysts have renewed warnings of a possible double dip in the market, as well.
The report further showed that private construction spending fell 1.4 percent in February from the month before to an annual pace of $468 billion, the slowest pace reported since April 1997. Homebuilding outlays declined 3.7 percent.
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