U.S. Construction Spending Unexpectedly Sees Further Downside In February

U.S. Construction Spending Unexpectedly Sees Further Downside In February

Construction spending in the U.S. unexpectedly saw further downside in the month of February, according to a report released by the Commerce Department on Monday.

The report said construction spending dipped by 0.3 percent to an annual rate of $2.091 trillion in February after edging down by 0.2 percent to a revised rate of $2.097 trillion in January.

The continued decrease came as a surprise to economists, who had expected construction spending to climb by 0.6 percent during the month.

The unexpected decline largely reflected a steep drop in spending on public construction, which slumped by 1.2 percent to an annual rate of $474.4 billion.

Spending on educational construction plunged by 1.8 percent to an annual rate of $100.5 billion, while spending on highway construction tumbled by 1.6 percent to a rate of $147.3 billion.

Meanwhile, the Commerce Department said spending on private construction in February came in at an annual rate of $1.617 trillion, virtually unchanged from the revised January estimate.

While spending on residential construction climbed by 0.7 percent to an annual rate of $901.1 billion, spending on non-residential construction slid by 0.9 percent to a rate of $716.0 billion.

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