The Commerce Department announced outlays for U.S. construction projects increased a slim 0.2 % in March on the seasonally adjusted basis annual rate at $942.5 billion. Growth of residential construction in the last month, shows that more americans are able to afford to buy own home.
Construction spending is closely watched by investors and economists for signs of whether the economy is growing or shrinking. Over the past 12 months, U.S. construction outlays marked an by 8.4 % advance as the public construction outlays increased on the slower rate than total construction spending.
Outlays for private construction increased by 0.8 % on the seasonally adjusted basis.
Growth in the private construction spending is generally viewed as a good news, as increasing private investments show optimism in private sector about future economic prospects.
From the same month a year ago, private construction outlays jumped by 16 %.
Public construction outlays decreased by -0.6 % despite the increase in total construction spending, on the seasonally adjusted basis.
Nonresidential public construction spending in March was at $262.9 billion annual rate, which represents 27.4 % of total construction spending.
Over the past 12 months, the construction of public projects decreased by -0.8 %.
February outlays for U.S. construction projects were revised to $940.8 billion to show -0.2 % decline.
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