Construction Spending Booms in February, Pulls Back Fractionally in March
May 1, 2017
Construction spending for the month of March followed the trends seen in other weather-dependent data, a weaker-than-expected month but coming on the heels of a stronger-than-expected February. February’s construction spending was revised up from +0.8% growth to +1.8% while activity in march pulled back 0.2% MoM. The stronger cumulative activity should add a few tenths to the first revision of 1Q GDP. Importantly, while the March data showed a pullback, residential investment held up quite well. Residential construction rose 1.2% in March including a 0.3% MoM gain in single family activity, a 2.0% gain in multi-family, and a 2.2% gain in home improvement.