US construction spending down 1.3% in February
WASHINGTON (AP) — Spending on U.S. construction projects fell 1.3% in February with housing and nonresidential construction both showing weakness even before the coronavirus struck with force in the United States.
The Commerce Department said Wednesday that the February decline followed a 2.8% rise in construction in January. Economists are forecasting more declines to come, especially in housing activity as the stay-at-home orders in much of the country crimp home sales.
Home construction fell 0.6% in February with the weakness coming in home remodeling projects. Construction of single-family homes and apartments both showed gains.
Spending on nonresidential projects was down 2% with declines for office buildings, hotels and the category that covers shopping centers.
Government spending, which covers state and local building projects and the federal government, dropped 1.5%.
The various changes left total construction spending at a seasonally adjusted annual rate of $1.37 trillion, up 6% from a year ago.