Construction spending rose for the month of February, realizing a .1 percent increase after a downward revision to January’s figures.
This analysis was presented by the Wells Fargo Economics Group, who found monthly non-residential construction spending rose .6 percent, while residential construction fell .7 percent month-over-month.
Total residential construction increased by 13.1 percent, year-over-year.
The group noted that the .1 percent increase in February amounted to a $945.7 billion annual pace, the highest level in five years. "Total outlays are now up almost 9 percent on a year-ago basis," the group said.
Although experiencing a decline in residential spending, the Wells Fargo Economics Group believes the housing recovery is still on track. They cite that private residential spending is still up for the year, at 13.5 percent over last year.
Private, nonresidential construction also increased for February. The group comments that spending increased by 1.2 percent, with power, communication, and lodging leading the way.
"However, forward-looking nonresidential outlays paint a more somber picture," the group cautioned.
The group added, "Billings for institutional architectural services and nonresidential employment remain weak. In contrast, leading residential construction indicators are showing signs of continued improvement."