MNI DATA IMPACT: US Mar Construction Down 0.9%, Below Exp>

--Private Residential Spending -1.8%; Nonresidential +0.5%

--Public Construction Spending -1.3%

By Shikha Dave and Harrison Clarke

     WASHINGTON (MNI) - Construction spending was down 0.9% in March,  

well below the 0.2% gain expected by MNI and the flat reading expected 

by the Bloomberg consensus, as private residential declined 1.8%, while 

nonresidential rose by 0.5% to an all-time high, data released by the 

Commerce Department Wednesday morning showed. 

     Here are the key takeaways from the releases:

     -Private residential construction fell by 1.8% in the month, 

following a 0.4% decline in February. Home building ex. new homes, also 

known as remodeling, saw a 3.1% decrease, according to an MNI 

calculation. Also based on an MNI calculation, total new homes fell by 

1.1%. Single-family building fell by 1.5%, while multi-family building 

posted a 0.7% increase. 

     -In addition to the decrease in private residential, private 

nonresidential construction rose by 0.5% in March, partially offsetting 

the overall decline in total private construction. The main drivers of 

the category were lodging (+1.8%), transportation (+1.5%), and 

manufacturing (+2.5%). 

     -Following a downward February revision to a 3.2% increase from a 

previously reported 3.6% gain, public construction spending fell by 1.3% 

in March. The drop in public construction was driven by a 2.7% decline 

in health care and a 5.5% decline in amusement and recreation, as well 

as declines in most other categories. State and local construction was 

down 1.1% in the month. Federal construction fell by 2.7%. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$,MAUDR$,MT$$$$]