Construction Spending Increases 0.3%

Construction spending rose in March for the first time in six months, the Commerce Department said Monday.

The 0.3% increase followed a revised 1% drop in February.

Increased construction on commercial and government projects overshadowed the continued decline in home building, Bloomberg reported. The increase was led by construction of power plants, hotels and factories.

Construction projects for the month fell to $967.5 billion, the lowest level in five years.

Non-residential construction, which includes public projects, increased 2%, and rose 1.7% compared to a year ago. Residential construction fell 4.1%.

Infrastructure spending is projected to increase in the coming months as governments spend money from the $787 billion economic stimulus package, Bloomberg said.

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