According to a May 3 report by the US Department of Commerce (DOC), construction activity in March increased by 0.2 percent- reflecting the first rise for the industry since October of last year. Comparatively, most economists had forecasted a 0.3 percent decline. The increase is attributed to gains in state and local government projects.
The boost, says the DOC, was likely the result of stimulus spending. Public building projects increased by 2.3 percent, although residential activity declined 1.1 percent. Nonresidential construction also reflected a 0.7 percent decline. Total commercial activity, adjusted, is forecasted to reach $847.3 billion, while nonresidential and private construction fell to the lowest level seen in a decade- only forecasted to reach $550.8 billion. The previous low came in January 1999, when nonresidential and private construction spending was recorded at $548.9 billion.