March Shows Some Construction Gains

It was a modest gain at 0.3 percent, but construction spending in March 2009 rose from the month before, marking a reversal after five straight declines, according to the United States Department of Commerce.

In an early May news release, the Commerce Department has reported new contract values for March at $970 billion, up from the $967 billion reported for February.

The non-residential sectors showing some signs of growth included utilities (energy in particular, as well as communication and sewage), hotels and manufacturing. Residential construction continued its decline.

Non-residential spending for March 2009 was actually above (by 1.7 percent) where it was in March 2008, portraying a drastically different picture from the 33.3 percent year-on-year decline in residential construction.

The last time spending rose month-over-month was in September of 2008, according to an Associated Press report.

Spending across many sectors remains down from where it was in March 2008, although others have gained strength heading into the 2009 construction season, including the health care, education, public safety and utility sectors.

Strong public sector spending is responsible for many of the gains in those segments, although additional private sector investment has helped in the health care and energy sectors.