Construction Spending Lower Than Expected in March 2015

Construction spending fell nearly 60 bps to a seasonally adjusted $966.6 billion in March, its lowest level in six months. Following a flat reading in February, growth in construction spending slowed to a 2% annual rate in March. Inclement weather compounded by a strong dollar, labor disputes near West Coast ports, and lower oil prices likely contributed to the recent deceleration in construction spending, but are not expected to have derailed the medium-term trend in construction activity.