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U.S. Construction Spending Muted in February
The Commerce Department reported that spending on U.S. construction projects increased just 0.1% in February from the previous month. That level of economic growth isn’t contributing much to encourage acceleration in home building, hospital development or highway infrastructure construction.
Construction spending in February totaled $1.27 trillion at a seasonally adjusted annual rate. Factors such as low unemployment and business and consumer confidence helped drive an increase in hotel and office development, but roadway spending slipped.
Part of the February sluggishness could be attributed to a 2.1% decrease in government-funded construction, though the private sector appears to be still in slumber mode, despite a low 4.1% unemployment rate.
The home building sector, which accounts for the largest amount of spending, was up just 0.1% last month. There is strong buyer demand, though new projects are constrained by lack of affordable land and a shortage of construction workers.
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- ◦Economy
