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Construction Spending Posts Second Consecutive Monthly Decline
Construction spending in February unexpectedly declined 0.3% from January to a seasonally adjusted annual rate (SAAR) of $2,091.5 billion after an unrevised 0.2% decline in January, the U.S. Census Bureau said Monday. It marked the second consecutive month of declines.
Economists polled by Reuters had forecast construction spending rebounding 0.7%. Continued strength in residential building , which rose 0.7% from January, wasn’t enough to offset month-to-month declines in nonresidential and public construction.
Spending on private construction—including residential projects—was virtually unchanged from January, while nonresidential construction declined 0.9% from the revised January estimate to an SAAR of $716 billion. Public construction expenditures were down 1.2% from January for an SAAR of $474.4 billion.
On a year-over-year basis, construction spending was up 10.7% in February, according to the Census Bureau. During the first two months of 2024, construction spending amounted to $298.1 billion, up 11.9% from the year-ago period.
- ◦Development
