Construction Spending Softened in March

Total construction spending fell in March from February levels and remained only slightly higher than one year earlier the Census Bureau said today.  Overall spending was down 0.6 percent on a month-over-month basis to a seasonally adjusted annual rate of $966.6 billion from $972.9 billion.  The March rate was 2.0 percent higher than the revised $947.3 billion rate in March 2014.

On an unadjusted basis total spending in March was estimated at $72.7 billion compared to $66.51 billion in February.  Year-to-date expenses through the end of March were $206.71 billion an increase of 32 percent from the 200.37 billion spent during the same period in 2014.

Total construction spending in the private sector was at a seasonally adjusted annual rate of $702.39 billion, down 0.3 percent from February's $704.67 billion but 2.9 percent above the rate of $682.33 billion in March 2014.  On an unadjusted basis private construction put in place in March was estimated to have a value of $54.61 billion.  Year-to-date expenditures total $154.77 billion, an increase of 3.7 percent from the first three months of 2014.

Private sector residential spending was at a seasonally adjusted annual rate of $348.95 billion, down for both the month and year by 1.6 percent and 2.6 percent respectively.  Single-family construction totaled $200.76 billion on an annual basis, down 1.8 percent from February but 7.8 percent higher than in March 2014.  Spending on multi-family units was estimated at $40.19 billion, a 2.1 percent monthly decline from but up 23.4 percent compared to March 2014. 

On a non-adjusted basis total residential spending was $26.82 billion, up from $23.40 billion in February and year-to-date spending increased by 0.9 percent.  Year-to-date spending for single family construction was 10.2 percent higher than last year and multi-family spending increased by 27.1 percent.

Total public construction was estimated at $264.17 billion, down 1.5 percent on a monthly basis and 0.3 percent year-over-year.  Residential spending in the sector was at a rate of $5.79 billion, a 0.9 percent decrease from February but 16.5 percent higher than in March 2014.