WASHINGTON (AP) – U.S. construction spending advanced in March to its highest level in more than eight years. Gains in home building and nonresidential construction offset a drop in government projects.
Construction spending rose 0.3 percent in March after a 1 percent gain in February, the Commerce Department said Monday. The back-to-back increases raised total spending to a seasonally adjusted annual rate of $1.14 trillion, the highest level since October 2007.
But the construction spending figure for January was revised down by the government to show a drop of 0.3 percent rather than a previously reported increase of 2.1 percent.
Last month, home construction increased at a 1.6 percent annual rate, while nonresidential construction increased 0.7 percent. Spending on government projects dropped 1.9 percent, with both state and local and federal spending falling.
Home construction was a bright spot last year for the U.S. economy, and that support is expected to continue through 2016.