U.S. Construction Spending Rises for the Third Straight Month in April
Summary
- Total Apr. construction +1.2% (7.2% y/y), higher than expected.
- Residential private construction rises 0.5% (-9.2% y/y), led by m/m construction gains in home improvement and multi-family but partly offset by a 0.8% drop (-24.7% y/y) in single-family building.
- Nonresidential private construction increases 2.4% (31.2% y/y), up for the 11th time in 12 months.
- Public sector construction grows 1.1% (16.5% y/y), up for the 10th time in 11 months, led by a 1.1% rise (16.8% y/y) in nonresidential public construction.
The value of construction put in place rose 1.2% m/m in April after an unrevised 0.3% increase in March and an upwardly revised 2.4% gain in February (-0.3% previously), according to the U.S. Census Bureau. The April rise was the third consecutive monthly gain following m/m drops in January and December. The year-on-year rate accelerated to 7.2% in April from 6.6% in March; nevertheless, it remained below an 11.7% y/y high in February 2022. A 0.2% m/m April increase had been expected in the Action Economics Forecast Survey.
Private construction grew 1.3% (4.9% y/y) in April after upwardly revised rises of 0.4% in March (+0.3% initially) and 2.4% in February (-0.7% previously). The April reading was the third straight m/m increase following two successive m/m declines. Residential private construction was up 0.5% (-9.2% y/y) in April after virtually unchanged in March and February. Home improvement building advanced 1.7% (2.1% y/y), the fifth m/m increase in six months, after a 1.0% March gain. Multi-family building rose 0.6% (24.9% y/y), the ninth consecutive m/m rise, after a 0.2% March increase. Single-family building, however, slid 0.8% (-24.7% y/y), the 11th straight m/m slide, on top of a 1.1% March decline.
Nonresidential private construction rose 2.4% (31.2% y/y) in April, the 11th m/m advance in 12 months, after a 1.0% increase in March. The April rise reflected m/m gains of 8.7% (104.6% y/y) in manufacturing construction, 2.7% (41.6% y/y) in lodging construction, 1.6% (12.5% y/y) in amusement & recreation private construction, 1.0% (17.9% y/y) in religious construction, 0.7% (23.4% y/y) in commercial private construction, 0.3% (14.6% y/y) in office private construction, 0.3% (13.7% y/y) in health care private construction, and 0.1% (5.1% y/y) in communication construction. To the downside, the following nonresidential private constructions posted their m/m declines in April: utilities (-1.4%; +0.1% y/y), transportation (-0.6%; +33.0% y/y), and educational (-0.2%; +19.3% y/y).
The value of public construction was up 1.1% (16.5% y/y) in April, the 10th m/m increase in 11 months, after essentially unchanged in March (+0.2% initially), reflecting a 1.0% decline (+7.9% y/y) in residential public construction and a 1.1% gain (16.8% y/y) in nonresidential public construction. The following nonresidential public constructions registered their m/m increases in April: conservation & development (6.0%; 31.5% y/y), office (4.3%; 10.7% y/y), health care (3.5%; 15.3% y/y), utilities (2.4%; 24.5% y/y), transportation (2.0%; 6.7% y/y), water supply (1.9%; 26.9% y/y), amusement & recreation (1.7%; 11.8% y/y), commercial (1.2%; 32.8% y/y), and public safety (0.8%; 7.2% y/y). Notably, spending on highways & streets, which makes up 30.6% of public construction spending, rebounded 1.3% (21.6% y/y), the fourth m/m gain in five months, after a 0.4% March decline. In contrast, the following nonresidential public constructions declined m/m in April: sewage & waste disposal (-1.6%; +21.6% y/y) and educational (-0.1%; +11.4% y/y).
The construction figures can be found in Haver's USECON database. The expectations figure is from the Action Economics Forecast Survey in AS1REPNA.
Winnie Tapasanun
AuthorMore in Author Profile »Winnie Tapasanun has been working for Haver Analytics since 2013. She has 20+ years of working in the financial services industry. As Vice President and Economic Analyst at Globicus International, Inc., a New York-based company specializing in macroeconomics and financial markets, Winnie oversaw the company’s business operations, managed financial and economic data, and wrote daily reports on macroeconomics and financial markets. Prior to working at Globicus, she was Investment Promotion Officer at the New York Office of the Thailand Board of Investment (BOI) where she wrote monthly reports on the U.S. economic outlook, wrote reports on the outlook of key U.S. industries, and assisted investors on doing business and investment in Thailand. Prior to joining the BOI, she was Adjunct Professor teaching International Political Economy/International Relations at the City College of New York. Prior to her teaching experience at the CCNY, Winnie successfully completed internships at the United Nations. Winnie holds an MA Degree from Long Island University, New York. She also did graduate studies at Columbia University in the City of New York and doctoral requirements at the Graduate Center of the City University of New York. Her areas of specialization are international political economy, macroeconomics, financial markets, political economy, international relations, and business development/business strategy. Her regional specialization includes, but not limited to, Southeast Asia and East Asia. Winnie is bilingual in English and Thai with competency in French. She loves to travel (~30 countries) to better understand each country’s unique economy, fascinating culture and people as well as the global economy as a whole.
