Construction spending falls 0.6% in March with lone gains in nonresidential

With decreases across all sectors save for private nonresidential, U.S. construction spending fell 0.6 percent in March to a seasonally adjusted annual rate of $966.5 billion, according to preliminary estimates from the Commerce Department.

Spending remained 2 percent above the March 2014 level.

Total residential spending fell 1.6 percent to a rate of $354.7 billion and is now 2.3 percent below the March 2014 level.

The private homebuilding sector also fell 1.6 percent to $349 billion and is down 2.6 percent for the year. Private spending on single family homes fell 1.8 percent to $200.7 billion while spending on apartments fell 2.1 percent to $49.1 billion.

Spending for single-family and apartments is up 7.9 percent and 23.4 percent year-over-year, respectively.

Public homebuilding was down 0.9 percent for the month to $5.7 billion.

Total nonresidential spending was flat for the month and at $611 billion remains 4.7 percent above the March 2014 level.

The lone bright spot in this month’s report, private nonresidential rose 1 percent to $353.4 billion and is up 9 percent on the year. The biggest percent gains in the sector during March were communication, up 12 percent to $16.1 billion; lodging, up 5.7 percent to $17.2 billion, and transportation, up 3.3 percent to $13.4 billion.

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Public nonresidential dropped 1.5 percent on the month to $258.3 billion with the lone gains coming from commercial, up 12.4 percent to $2.1 billion; water supply, up 4.4 percent to $11.8 billion, and transportation, up 0.1 percent to $31.1 billion.

Total private construction fell 0.3 percent to $702.3 billion but remains up 3 percent year-over-year. Government construction spending fell 1.5 percent to $264.1 billion and is down 0.3 percent year-over-year.