US construction spending tumbles on weak homebuilding

US construction spending tumbles on weak homebuilding

FILE PHOTO: Newly constructed houses built by Lennar Corp are pictured in Leucadia, California, U.S., March 18, 2015. REUTERS/Mike Blake/File Photo
01-May-2018: U.S. construction spending unexpectedly fell in March as a sharp decline in homebuilding led to the biggest drop in investment in private construction projects in more than seven years.The Commerce Department said on Tuesday construction spending tumbled 1.7 percent. February data was revised to show construction spending increasing 1.0 percent instead of the previously reported 0.1 percent gain.Economists polled by Reuters had forecast construction spending accelerating 0.5 percent in March. Construction spending rose 3.6 percent on a year-on-year basis.In March, spending on private construction projects declined 2.1 percent. That was the largest fall since January 2011 and followed a 1.2 percent increase in February. Outlays on private residential projects plunged 3.5 percent, the biggest drop since April 2009, after advancing 1.2 percent in February.Spending on both single and multifamily housing projects fell in March.Spending on nonresidential structures slipped 0.4 percent in March after surging 1.2 percent in the prior month.
Investment in public construction projects was unchanged last month after edging up 0.1 percent in February. Spending on federal government construction projects jumped 2.2 percent to the highest level since September 2011. That followed a 0.5 percent rise in February.State and local government construction outlays fell 0.3 percent after being unchanged in February.(Reporting By Lucia Mutikani; Editing by Andrea Ricci) (([email protected]; 1 202 898 8315; Reuters Messaging: [email protected])
Source: Reuters
 Source : http://www.channelnewsasia.com/news/business/us-construction-spending-tumbles-on-weak-homebuilding-10192604