U.S. construction spending grows, while manufacturing slows

A pair of separate reports out this morning shows spending on U.S. construction projects rebounded in February to the highest level in more than four years, while U.S. manufacturing activity expanded more slowly in March than February. Construction spending rose 1.2% overall in February compared to January, when construction had dropped 2.1%, the Commerce Department reports. Spending rose to a seasonally adjusted annual rate of $885.1 billion, which was 7.9% higher than a year ago. The advance was led by a 2.2% rise in private residential construction, which climbed to an annual rate of $303.4 billion—the best showing since November 2008. Private nonresidential construction was up 0.4% while public construction rose 0.9%. Construction spending is expected to keep growing this year, fueled by more homebuilding and broader improvement in the economy. The Associated Press has more details on that report here. Meanwhile, The Institute for Supply Management says its index of factory activity slipped to 51.3%. That’s down from 54.2% in February, which was the fastest growth since June 2011. The survey says U.S. manufacturing activity was held back by weaker growth in production and new orders. The one bright sign in the report was that factories hired at a faster pace. A reading above 50 indicates expansion.