Construction Spending Unexpectedly Fell in April

Total construction spending unexpectedly fell by 0.1% in April, according to the latest data from the Census Bureau. This follows a 0.2% drop in March and marks the second consecutive monthly decline and the third in four months. Economists had forecast a 0.2% rise for April.

By the numbers:

• Total Construction Spending: Decreased by 0.1% in April.
• Private Residential Construction: Increased by 0.1%, driven by a 0.1% rise in single-family construction spending.
• Single-Family Construction Spending: Up 20.4% year-over-year.
• Multi-Family Construction Spending: Fell by 0.3% in April but remains up 2.3% year-over-year.

Residential Silver Lining: The unexpected drop in total construction spending is a sign of broader challenges within the construction sector. However, the slight rise in private residential construction, particularly single-family homes, indicates resilience in that market segment.

Bottom Line: Higher rates are continuing to stall construction.