Finance counsels

U.S. construction spending fell at a slower-than-expected rate in February, a government report on Wednesday, suggesting that the pace of deterioration was start to moderate.

The Commerce Department said spending on construction projects slipped 0.9% to a seasonally adjusted annual rate of $967.5 billion, the lowest since March 2004, after falling by a revised 3.5% in January.

Analysts polled by Reuters were expecting a 1.8% decline in overall construction spending in February. Compared to the same period a year-ago, construction spending dropped 10%. Spending in the first two months of 2009 is down 10.9% versus the same period last year, the department said business card design.

Private residential construction spending, a trigger of the U.S. recession, tumbled 4.3% in February to $275.1 billion, the lowest since December 1997, after falling 3.7% the prior month.

Spending on public construction rose 0.8% in February, the biggest gain since October, versus a 2.4% decline in January, while spending on private nonresidential structures increased 0.3% after falling 4.3% the prior month. 

Source

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