Despite a number of indicators suggesting that the economy is improving, the annual rate of construction spending edged lower in February.
According to a recent report from the Department of Commerce, the seasonally adjusted annual construction spending rate dipped 1.1 percent to an estimated $808.9 billion. The previous month's rate was $818.1 billion. However, on an annual basis, the construction spending rate was 5.8 percent above the level in February 2011.
During the course of the first two months of 2012, property data indicates that the total construction spending amounted to $111.3 billion, which is significantly greater than the $103.7 billion reported during the same period a year earlier.
Meanwhile, the reported noted that both private and public construction reported declines in spending during the month. Private construction fell 0.8 percent from January to an annual rate of $527.3 billion. Similarly, public construction declined 1.7 percent in February from the previous month to $281.6 billion.
However, despite the marginal declines, a number of industry experts anticipate the construction spending rate to increase as the housing market enters the summer season, which is a time that has been known to see increased activity from both developers and buyers alike.