Construction outlays down in March after record February - Wells Fargo

Analysts at Wells Fargo note that the construction outlays fell 0.2 percent in March from an upwardly revised $1,220.7 billion annual rate in February, which had marked a new record high for the series. They add that private construction continued to lead.

Key highlights:

Spending Slipped from February’s All-Time High

• Total construction spending slipped 0.2 percent in March, surprising consensus which expected an increase. Notoriously significant revisions to the previous month revealed spending hit an all-time high in February.
• The dip in March was due to a 0.9 percent drop in public construction spending. Private spending was flat as declines in nonresidential outlays were offset by gains in residential.

Private Construction Spending Boosts GDP Growth

• Private residential spending was up 1.2 percent in March, as new multifamily spending rose 2 percent while single-family was up 0.3 percent. Multifamily construction spending and home improvement spending each reached record highs in March. Most nonresidential categories declined in March after warmer February weather pulled activity forward. Structures, business investment and residential were bright spots in Q1 2017.