Power construction spending surged 9% in March and all other heavy market were approximately stable. The power surge is the tail end of the last business expansion and will not persist much longer. But added highway spending from the stimulus plan will become significant within a few months. A large share of the $27 billion has been committed to specific projects with bidding beginning for many of these projects by the of spring.

Heavy construction spending will be down 4.7% this year after three years of double digit gains but will recover 4.0% in 2010 when the full impact of economic stimulus spending hits the market. The outlook for private heavy projects in transportation, utility and communications facilities is much weaker than the outlook for spending on public non-building projects. This reverses the trend in the last few years.

U.S. Non-building (Heavy Engineering) Construction
(billions of U.S. current dollars)

* Monthly figures are seasonally adjusted at annual rates (SAAR figures).
The total includes some miscellaneous buildings.
Actuals: U.S. Census Bureau, Department of Commerce (put-in-place investment figures).
Forecasts and table: Reed Research Group.