Construction Spending Rebound in February
Construction spending rebounded in February, led by a pickup in homebuilding, despite elevated borrowing costs. Residential sector continues to drive construction activity, with single-family homebuilding up 1.0 percent.
Key Points
- Private residential construction rose 1.3 percent
- Single-family homebuilding up 1.0 percent
- Private nonresidential construction rose 0.4 percent
- Public construction ticked up 0.2 percent
Pros
- Increase in construction activity signals economic growth
- Steady demand for new homes benefiting homebuilders
Cons
- Elevated borrowing costs impacting affordability
- Multifamily construction remains down from a year ago