Spending on government construction projects fell again as state and local governments remain cautious as falling tax revenues due to the pandemic cut into their budgets. Public project spending fell 1.5% in March, with spending on schools and other educational facilities down 2% and highway and road construction spending declining 2.2%.
Housing has continued to be one of the strongest segments of the economy. In separate reports last month, sales of new homes boomed in March according to Commerce, as did construction of new homes.
Sales of new homes surged 20.7% in March to the highest level since 2006, the government said. Also in March, builders began construction on new homes and apartments at the fastest pace since June 2006 during the last housing boom, the Commerce Department reported in April.