Construction spending increased 0.2% in April to $1.52 trillion, the U.S. Census Bureau reports. Compared with April 2020, when pandemic-induced lockdowns were in full swing, construction spending increased 9.8%.
Year-over-year gains continued to be limited to the residential construction sector, which increased 1.0% compared with March and 29.5% year-over-year.
Total nonresidential construction spending dropped 0.5% during the month and 3.9% year-over-year. It’s the fifth consecutive month of nonresidential construction spending declines, and the lowest annual spending rate recorded since December 2018, according to the Associated General Contractors of America.
“Ever-growing delays and uncertainty regarding backlogs and delivery times for key materials, as well as shortages and record prices, are likely to make even more project owners hesitant to commit to new work,” stated Ken Simonson, chief economist for AGC.
The full Census Bureau report can be found here.
