<p>WASHINGTON — U.S. construction spending fell in February after several months of steady gains, likely because of unseasonably cold weather and winter storms in the south. </p>
<p>The Commerce Department <a href="https://www.census.gov/construction/c30/pdf/release.pdf">said Thursday that</a> spending on building projects slipped 0.8% in February, after a 1.2% gain in January. The drop was driven by lower spending on apartments, hotels, hospitals and educational facilities. </p>
<p>Public construction spending also dropped sharply, declining by 1.7%. State and local government budgets have come under strain during the pandemic, as tax revenue has fallen amid widespread unemployment and lower business revenue. </p>
<p>Home building has been <a href="https://apnews.com/article/business-home-sales-economy-9879c41f78368c71f3acdc3d791df7ea">a bright spot for construction</a> in the pandemic, as more people have sought larger living spaces to work from home and for children to attend school online. But residential construction shrank 0.2% last month, mostly because of bad weather. The drop was driven by a decline in apartment construction, while single-family home building rose slightly. </p>
<p>New home construction has been a big driver for developers since the pandemic. Construction spending on homes and apartments has soared more than 21% in the past year, driving all construction spending up 5.3% since the pandemic struck. </p>
