Construction Spending Slips Due to Weather, Interest Rates

Nonresidential construction spending dropped 1% in February to a seasonally adjusted annual rate of $1.179 trillion, according to Associated Builders and Contractors’ analysis of U.S. Census Bureau data.

That decrease in February marks the second month in a row of construction spending contraction, following a 19-month streak of construction spending growth, according to the report.

“The optimist will likely shrug off both the January and February nonresidential construction spending declines as merely reflecting winter weather,” said Anirban Basu, ABC chief economist. “The pessimist will proclaim this release a wake-up call to contractors and an indication that higher interest rates have finally begun to make their mark.”

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