Wells Fargo Reports: Construction Outlays Down in March After Record February

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. Private construction continued to lead.

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

• 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.