In a reflection of the weak overall economic recovery, private nonresidential construction spending increased 0.5 percent in April, according to the June 1 report by the U.S. Census Bureau. Year-over-year, private nonresidential construction spending is down 8.5 percent. Total nonresidential construction spending – which includes both privately and publicly financed construction – was $524.1 billion in April, down 0.8 percent for the month and down 8 percent from the same time last year (see graph below).
Three of the sixteen nonresidential construction subsectors had increased spending for the month including communication, up 4.5 percent; power, 2.5 percent higher; and health care, up 1.7 percent. Meantime, four subsectors were up from April 2010 including conservation and development, up 4.6 percent; power, 2.4 percent higher; health care, 2.4 percent higher; and communication, up 0.2 percent.
In contrast, thirteen subsectors posted decreases in spending for the month including lodging, down 4.9 percent; transportation, 4.5 percent lower; amusement and recreation, down 3.5 percent; religious, 2.8 percent lower; and sewage and waste disposal, down 2.6 percent. Twelve subsectors experienced a reduction in construction spending from the same time last year including lodging, down 29.8 percent; manufacturing, 26.7 percent lower; religious, down 18.5 percent; public safety, 15.9 percent lower; office, down 12.5 percent; and transportation, down 11.9 percent.
Public nonresidential construction spending dropped 2 percent for the month, and is down 7.5 percent from the same time last year. Residential construction spending rose 3.2 percent in April, but is down 12 percent over the last twelve month. Total construction spending – which includes both nonresidential and residential construction – was up 0.4 percent for the month, but is still down 9.3 percent from April 2010.