U.S. Markets open in 7 hrs 51 mins
  • S&P Futures

    4,372.75
    -39.00 (-0.88%)
     
  • Dow Futures

    34,830.00
    -144.00 (-0.41%)
     
  • Nasdaq Futures

    14,816.75
    -221.00 (-1.47%)
     
  • Russell 2000 Futures

    2,217.20
    -20.30 (-0.91%)
     
  • Crude Oil

    73.12
    -0.50 (-0.68%)
     
  • Gold

    1,831.40
    -4.40 (-0.24%)
     
  • Silver

    25.60
    -0.18 (-0.69%)
     
  • EUR/USD

    1.1882
    -0.0014 (-0.1188%)
     
  • 10-Yr Bond

    1.2690
    0.0000 (0.00%)
     
  • Vix

    17.70
    -0.61 (-3.33%)
     
  • GBP/USD

    1.3935
    -0.0023 (-0.1616%)
     
  • USD/JPY

    109.5350
    +0.0740 (+0.0676%)
     
  • BTC-USD

    39,781.60
    -166.77 (-0.42%)
     
  • CMC Crypto 200

    946.78
    +16.42 (+1.76%)
     
  • FTSE 100

    7,078.42
    +61.79 (+0.88%)
     
  • Nikkei 225

    27,273.47
    -508.95 (-1.83%)
     

Construction spending posts modest 0.2% gain in April

·2 min read

WASHINGTON (AP) — U.S. construction spending rose a modest 0.2% in April as strength in housing offset further weakness in nonresidential construction.

The April increase followed a much stronger 1% gain in March which was revised up from an initial estimate of a slight 0.2% advance. The April increase pushed construction to a seasonally adjusted annual rate of $1.52 trillion in April, 9.8% higher than a year ago, the Commerce Department reported Tuesday.

Through the first four months of this year, construction activity is 5.8% higher than the same period in 2020.

Home building, a standout performer over the past year, rose 1% in April and is now 29.7% higher than a year ago, underscoring how strong home construction has been in the past year. Construction of single-family homes was up 1.3% in Aril and apartment construction rose 1.9%.

Nonresidential construction fell 0.5% in April and is 4.8% below the level of a year ago. With the lockdowns over the past year, developers have struggled with cancellations of commercial projects as businesses had more employees work from home. That is a trend many see continuing, reducing the need for more office space.

Spending on government building projects fell 0.6% in April and is down 2.2% from a year ago, reflecting the construction cutbacks many states and localities have done as tax revenue fell during the pandemic-induced recession. In April, highway construction was up 0.6% from March but down 2.7% from a year ago.

“Overall, nonresidential and public construction spending remain depressed, but building activity activity in the residential sector should remain well-supported by low inventories and still-strong demand,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics.