Construction Spending Falls 1.4% in Third Straight Decline

Construction spending fell for a third straight month in February, the Commerce Department said Friday.

The 1.4% decline — which followed a 0.7% downturn in January — left spending at a $760.6 billion annual rate, its lowest since October 1999.

The decline was greater than economists’ median forecast of 0.2% downturn, Bloomberg reported.

Private construction spending fell 1.4%, as homebuilding spending dropped 3.7%.

Spending on public construction slid 1.3%, the fifth consecutive drop. Federal construction spending rose 0.7%, while state and local spending fell 1.5%.

Construction spending can boost demand for trucking services because spending increases the number of shipments of goods and building materials.