The U.S. Commerce Department recently released its report on construction spending for the month of March, and it appears that projects just barely picked up after two straight months of declines.
Construction spending figures in both the public and private sectors have been disappointing for many contractors this year, and things did not improve significantly in the month of March. Though analysts expected overall spending to jump by 0.5 percent, the end result was a meager 0.1 percent rise in spending, reports Bloomberg.
The figures were essentially saved by an increase in single-family home construction and commercial buildings in the private sector. During the month of March, it was mainly housing, hotels, office buildings and transportation hubs that kept construction companies afloat.
Government spending for construction projects has fallen off almost completely at the federal, state and local levels. Federal government spending was down 1.1 percent, reaching its lowest levels since February of 2007. State and local budgets set aside even less money for construction projects, dipping to their lowest point since November 2006. The decrease in spending wasn't a sign of budget restriction, however. In fact, the U.S. government as a whole actually increased its spending in March by nearly 4 percent to $28.9 billion in total. It just wasn't money going to contractors or construction companies.
Despite the significant decrease in government spending, there was still reason for optimism in the report. Overall, construction projects are still more readily available this year than they were last year, as the total spending for March construction was up 6 percent compared to the same month in 2011.
Construction companies looking for work will need to ensure that they can get the job done as efficiently as possible. One way to accomplish this is through used construction equipment bought through the online auction site IronPlanet. The site offers a wide range of equipment backed by IronClad Assurance inspection reports, which allow the buyer to know exactly what they're getting.
