Construction Spending Up Slightly in March

Construction spending gained ground in March for the third straight month, but at a much slower clip than in January and February, the government reported Wednesday.

Overall spending was up a scant 0.1%, compared to 2.3% in February and 2.9% in January--another indication of an economy inching ahead at a much slower pace during the first quarter than was projected at the start of the year.

The broadest measure of economic activity, the gross national product, showed growth of only 1.3% during the first three months of the year. A 0.2% decline announced Tuesday in the index of leading indicators portends more sluggishness in the months ahead.

In Wednesday’s report, the Commerce Department said construction spending in March totaled $324.2 billion on a seasonally adjusted annual rate, 4.7% ahead of spending for March, 1984.

Private non-residential building fell 0.5% in March to $86.4 billion from $86.8 billion, but residential building rose 1.3% to $134.8 billion from $133.1 billion.

Another government report Wednesday showed that the nation’s savings and loan associations made $18 billion in new mortgage commitments in March, compared to $14.5 billion in February.

Although that amounted to a 24% increase, the Federal Home Loan Bank Board said the figure was up only marginally if seasonal expectations were taken into consideration.

The board also said savers deposited $400 million more in S&Ls; than they withdrew in March--a turnaround from February, when customers withdrew $1.6 billion more than they deposited.

February had been an anomaly, however, as the only month in the last 12 in which withdrawals exceeded deposits.

The board said federally insured thrifts posted an $8.3-billion net deposit gain in March, up sharply from the $1.3-billion increase in the previous month.