Construction spending posts bigger-than-expected drop

By Aarthi Swaminathan

Construction data falls short of expectations on Wall Street

Construction spending fell in February as U.S. companies and the government scaled back projects amid high interest rates.

Spending on construction projects fell 0.3% in February to $1.9 trillion, the Commerce Department reported Monday.

The figure fell short of expectations on Wall Street. Economists were expecting construction spending to rise 0.7% in February.

Construction-spending data show how much the government and private companies spend on projects including housing and highways. The more the U.S. spends on construction, the higher the level of economic activity.

Over the past year, construction spending is up 10.7%.

In terms of residential real estate, private residential construction rose 0.7% in February, with single-family construction rising 1.4% and multifamily construction falling 0.2%.

Spending on public residential construction fell by 1.2%.

Write to Aarthi Swaminathan at aarthi@marketwatch.com.

-Aarthi Swaminathan

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04-01-24 1013ET

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