March construction spending drops
May 01, 2013
The U.S. Commerce Department recently reported that construction spending across the country fell in March. The dip may have been driven in large part by the cuts in government projects, according to the Associated Press.
Government project activity took a 4.1 percent hit, with spending dropping 4.2 percent at the state and local level and 1.7 percent among the federal government.
While construction spending nationwide may have seen a slight dip, the AP noted that construction activity for the month was still 4.8 percent higher year-over-year. Contractors who are taking on new projects can ensure they keep track of expenses with the use of job-costing software.
The report also noted that spending on private construction hit $598.4 billion for its seasonally adjusted annual rate. Signs indicate that residential construction will still maintain its upward trajectory going forward. Ryan Wang, economist at HSBC Securities USA, told Bloomberg it was likely "public levels of construction will be held steady for this year, but meanwhile we have an ongoing recovery in residential construction." Construction software may help contractors keep track of their ongoing projects, plan for upcoming ones and ensure they allocate their resources accordingly.