ARLINGTON, VA. — Total U.S. construction spending decreased by 0.1 per cent in February, as declines in single-family homebuilding and public construction outweighed a pick-up in private nonresidential construction, according to an analysis by the Associated General Contractors of America of new federal data.
Construction spending, not adjusted for inflation, totalled $1.844 trillion at a seasonally adjusted annual rate in February, 0.1 per cent below the January rate, which was revised up from the initial estimate a month ago. Spending on private residential construction decreased for the ninth consecutive month in February, by 0.6 per cent. Spending on private nonresidential construction increased by 0.7 per cent in February, while public construction investment dipped by 0.2 per cent.
Spending varied among large private nonresidential segments. The biggest component, manufacturing plants, jumped 2.7 per cent. Commercial construction, comprising warehouse, retail and farm construction, decreased 0.6 per cent in February.
Power construction climbed 1.5 per cent. Spending on private office constru ction, including data centres, rose 0.5 per cent.
The largest public categories were mixed as well. The biggest, highway and street construction, increased 0.3 per cent, while education construction slumped 0.9 per cent. Public spending on transportation projects fell 0.7 per cent.
Residential spending shrank due to a 1.8-per-cent contraction from January in single-family homebuilding. That outweighed an increase of 1.4 per cent in multifamily construction.
“Continued strong demand for manufacturing plants and data centres, along with an increase in power projects, contributed to the increase in private nonresidential construction,” said Ken Simonson, the association’s chief economist, in a statement. “Those segments appear likely to keep growing for many months to come.”
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