Construction spending down in February

February saw a decline in construction spending.
February saw a decline in construction spending.
A recent report indicates that less construction equipment may have been on the move in February.

According to the U.S. Census Bureau, construction spending during that month declined 1.3 percent, falling to $846.2 billion from January's annual rate of $857.8 billion. On a year-over-year basis, spending on projects is down 12.8 percent.

The first two months of 2010 have seen construction spending reach $116.2 billion, which is 14.4 percent lower than the same period in 2009.

Private construction fell 1.2 percent from January to February. The largest decline in that sector was in residential projects, which came in at an annual rate of $250.8 billion. That is 2.1 percent below January's total. Nonresidential construction declined 0.4 percent.

Spending on public construction projects also dropped 2.1 percent despite government efforts through the American Recovery and Reinvestment Act. The act set aside $275 billion in federal contracts, grants and loans.

Seasonal concerns may have played a factor in the downturn seen in spending. Bad winter weather affected parts of the country in February, which may have stopped the movement of construction equipment on projects.