April Construction Spending Preview
Construction Spending is expected to fall 0.6% in April following a 1.1% decline prior. Private Residential Construction fell 4.6% in March, Private Non-Residential Construction rose 1.9%, and Public Construction increased 0.6%.
Private Residential Construction Spending will continue to drag on overall construction spending, especially single-family and home improvement spending, as the US housing market continues to stumble through spring.
Overall Construction Spending in April should received a boost from private non-residential and public construction spending, however these gains are unlikely to fully mitigate the negative impact from declines in private residential spending.
Related Data:
• April aggregate construction hours worked fell 1.5%
• March Pending Home Sales Index down 1%
• May NAHB Housing Market Index: 19 from 20 in April
• April Housing Starts up 8.2%, Building Permits up 4.9%
• March House Price Purchase Index down 0.4%
• April Existing Home Sales down 1%
• S&P/CaseShiller Composite 20 year-over-year down 14.4%
• April New Home Sales up 3.3%