Construction Spending Hits 8-Year Low
WASHINGTON, D.C. (
) -- Construction spending hit its lowest mark since November 2002 in February, sending yet another signal that the recovery in the housing sector is uneven and uncertain. Construction spending fell to $846.2 billion in February, which was the fourth straight monthly decline, according to data released by the U.S. government mid-morning on Thursday.
Earlier in the week, the Standard& Poor's/Case-Schiller Home Price Index signaled that the housing outlook was uncertain and that recent gains in home prices had moderated to the point at which a double dip in home prices was not out of the question on the road to a sustained recovery.
Construction spending fell 1.3% in February, a larger decline than anticipated by economist forecasts.
Private construction spending declined by 1.2% to $553.5 billion. Residential construction spending of $250.8 million in February was 2.1% below the previous month.
Non-residential construction slipped 0.4% to $302.7 billion.
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Public construction spending experienced a larger drop than private construction in February, down 1.7% to $292.7 billion, with a lower level of highway construction leading the decline.
-- Reported by Eric Rosenbaum in New York.
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