Monday, May 4, 2009
Construction spending rose unexpectedly in March after five straight declines, as strength in nonresidential projects and government building offset a further slide in housing.
The Commerce Department says construction spending increased 0.3% in March, the best showing since a similar rise last September. Economists surveyed by Thomson Reuters had expected spending to drop 1.5%.
The surprising rebound may be temporary, however, given all the problems facing the industry. The worst housing slump in decades and a severe financial crisis have made it hard for builders to obtain financing.