March Construction Spending Up Slightly Over February But Increased 6.7% YTY

The U.S. Census Bureau of the Department of Commerce reported that construction spending during March 2012 was estimated at a seasonally adjusted annual rate of $808.1 billion, 0.1 percent above the revised February estimate of $807.3 billion. The March figure is 6% above the March 2011 estimate of $762.6 billion. During the first three months of this year, construction spending amounted to $171.2 billion, 6.7 percent above the $160.4 billion for the same period in 2011.

Private construction. Spending on private construction was at a seasonally adjusted annual rate of $531.9 billion, 0.7 percent above the revised February estimate of $528.1 billion. Residential construction was at a seasonally adjusted annual rate of $244.1 billion in March, 0.7 percent above the revised February estimate of $242.5 billion. Nonresidential construction was at a seasonally adjusted annual rate of $287.8 billion in March, 0.7 percent above the revised February estimate of $285.7 billion. An encouraging development was the 5.4%-increase in private office construction to $23.7 billion. This increase meant spending in this segment was up a solid 8.6% YTY.

Public construction. In March, the estimated seasonally adjusted annual rate of public construction spending was $276.2 billion, 1.1 percent below the revised February estimate of $279.1 billion. Educational construction was at a seasonally adjusted annual rate of $69.1 billion, 1.2 percent below the revised February estimate of $70 billion. Highway construction was at a seasonally adjusted annual rate of $77 billion, 0.8 percent below the revised February estimate of $77.6 billion.