Another Drop in Residential Outlays Weighs on Total Spending
Source: Economics Group of Wells Fargo Bank, N.A.Summary Single-Family Construction Drags Down Overall Construction
Total construction spending declined 0.1% during February. Upward revisions to spending during January takes some sting out of the monthly drop. On a year-over-year basis, overall construction spending was up 5.2% in February.The monthly decline in total spending was largely due to another drop in the residential sector. Total residential outlays dipped 0.6% in February, the ninth consecutive monthly decline.The overall slip in private residential spending was driven entirely by waning single-family construction. Consistent with prolonged weakness in single-family housing starts, single-family outlays in February declined for a 10th straight month, slipping 1.8%. This drop translates to a 21.4% year-over-year decline.