WASHINGTON—A government report due Thursday is forecast to show that construction activity fell 0.9 percent in March, the sixth traight monthly drop as the slowing economy caused more builders to put more projects on hold.
The Commerce Department report, scheduled for release at 10 a.m. EDT, is expected to show that spending fell to an annual rate of $1.112 trillion, according to the consensus forecast of Wall Street economists surveyed by Thomson/IFR.
February's results, which put spending at an annual rate of $1.122 trillion, were down 0.3 percent from January's revised $1.125 trillion pace.
Only government building projects showed a gain in February, as residential construction fell by 0.9 percent. Residential activity has fallen every month since March 2006, a record period of declines that underscores the severe housing downturn.
Big U.S. residential builders, including D.R. Horton Inc., Lennar Corp. and Centex Corp., have seen shares plummet the past 12 months. Scottsdale, Ariz.-based builder Meritage Homes Corp. posted a $45.3 million first-quarter loss Tuesday as continued weak demand for housing sent sales tumbling.
