by Calculated Risk on 5/01/2008 09:59:00 AM

Spending declined in March for residential, but increased to for non-residential private construction. The increase in March - to a new record high for non-residential spending - followed three straight months of spending declines.

From the Census Bureau: March 2008 Construction Spending at $1,123.5 Billion Annual Rate

Spending on private construction was at a seasonally adjusted annual rate of $827.4 billion,1.7 percent below the revised February estimate of $842.0 billion.

Residential construction was at a seasonally adjusted annual rate of $445.0 billion in March, 4.6 percent below the revised February estimate of $466.7 billion.

Nonresidential construction was at a seasonally adjusted annual rate of $382.3 billion in March, 1.9 percent above the revised February estimate of $375.3 billion.

Click on graph for larger image.

The graph shows private residential and nonresidential construction spending since 1993.

Over the last couple of years, as residential spending has declined, nonresidential has been very strong. It appeared - over the last three months - that the expected slowdown in non-residential spending had arrived.

However, non-residential spending in March set a new nominal record (seasonally adjusted annual rate). This is a little surprising given tighter lending standards and reduced capital spending plans - and perhaps the numbers for March will be revised downwards in the next release.