U.S. construction spending fell for 2nd straight month in February

WASHINGTON (Reuters) – U.S. construction spending unexpectedly fell in February as strength in single-family home construction was offset by weakness in non-residential and public projects.

Construction spending fell 0.3% after an unrevised 0.2% drop in January, the Commerce Department said on Monday. Economists consulted through Reuters It predicts a 0.7% recovery in construction spending. In February, construction spending increased by 10.7% year-on-year.

Spending on private construction projects was unchanged in February for the second month in a row. Investments in residential construction rose 0.7% after rising 0.1% in the previous month.

Spending on new single-family construction projects increased 1.4%, driven by tight housing affordability.

Spending on private non-residential structures such as factories fell by 0.9%. The overall decline in spending was driven by a 2.5% drop in recreation and entertainment programs. Investment in healthcare facilities fell by 1.9%, while spending on commercial buildings fell by 1.7%. Spending on industrial construction projects fell by 0.6%.