WASHINGTON – U.S. construction spending advanced in March to its highest level in more than eight years. Gains in home building and nonresidential construction offset a drop in government projects.
The Commerce Department says construction spending rose 0.3 percent in March after a 1 percent gain in February. The back-to-back increases raised total spending to a seasonally adjusted annual rate of $1.14 trillion, the highest level since October 2007.
Home construction increased 1.6 percent, while nonresidential construction increased 0.7 percent. Spending on government projects dropped 1.9 percent, with both state and local and federal spending falling.
Last year, home construction was a bright spot for the U.S. economy, and that support is expected to continue through 2016.