Construction spending in the United States fell again in February, the U.S. Commerce Department said Tuesday, as home building figures declined for a record 24th consecutive month. The report showed overall construction activity down 0.3 percent in February and reflected weakness in both residential and non-residential building activity. Government building projects were the only exception for the month. Residential construction fell by 0.9 percent in February and has declined every month since March 2006. The trend is not expected to change in the near future because a record number of unsold homes remain on the market, reducing demand for additional new houses. A reduction in the existing unsold homes is complicated by tightened lending standards, which make it harder for potential buyers to secure a loan, and a rising number of foreclosed homes coming back into the market. Spending on nonresidential projects was down 0.1 percent in February after declines of 1 percent in January and 0.2 percent in December, the Commerce Department said. Weakness in February reflected declines in office building, health care facilities and schools. The one area of strength was government building projects, which rose 0.4 percent with federal spending up by 1.4 percent and state and local projects rising by 0.4 percent. Total construction spending dipped to $1.12 trillion at an annual rate in February while private activity fell to $826.6 billion at an annual rate and government spending was up to $294.9 billion at an annual rate.
