U.S. construction spending rises in April on rise in residential outlays

U.S. construction outlays rose in April after recording a fall in March. Construction spending rose 1.8 percent in the month. Most of the rise was driven by a 4.4 percent rise in residential outlays, while non-residential spending was essentially flat for the second straight month. Public expenditures dropped 1.3 percent due to a 1 percent fall in highway and street outlays. In spite of the recent volatility, construction continues to trend higher this year and is up 6.6 percent year-on-year, noted Wells Fargo in a research report.

Most of April’s recovery in residential construction spending was because of a rebound in home improvement expenditures, which rose 11.6 percent. Outlays for single-family construction were flat in April and multifamily construction rose 3.6 percent. Total non-residential construction spending was little changed in April, Outlays for office, lodging, communication, transportation, and power structures all rose during the month.

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