Construction Spending Slimmed by Public-Sector Cuts

Construction spending squeaked up 0.4% for April to a seasonally adjusted annual rate of $860.8 billion, according to a Commerce Department report (link opens in PDF) released today.

After falling a revised 0.8% for March, analysts had estimated a month-to-month 1% increase.


Private nonresidential construction made up where other spending left off, bumping up 2.2% from March to a seasonally adjusted annual rate of $300.1 billion. Private residential spending increased 0.1% to a $301.9 billion annual rate, while public spending fell 1.2% to a $258.8 billion annual rate in April.

Public-sector cuts have been the primary drag on construction spending in recent times. Over the past year, private residential construction is up 18.8%, private nonresidential is up 0.6%, and total public construction is down 5.1%. Overall, total construction spending over the past year has managed a 4.3% increase.


The article Construction Spending Slimmed by Public-Sector Cuts originally appeared on

You can follow Justin Loiseau on Twitter @TMFJLo and on Motley Fool CAPS @TMFJLo.Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.