The dollar value of new construction activity on residential, non-residential, and public projects. Data are available in nominal and real (inflation-adjusted) dollars. Why Investors Care
| Released on 5/31/07 For Apr 2007 | ||||||||||||
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Highlights
Construction spending edged up 0.1 percent in April, following a 0.6 percent boost in March. The April increase was just above the market forecast for no change in construction outlays. March outlays were revised up notably from the prior estimate of a 0.2 percent rise. The April gain was led by nonresidential and public construction outlays. Once again, residential construction continued to decline.
On a year-on-year basis, overall construction outlays slipped to down 2.0 percent in April from down 1.9 percent in March.
By sectors, private residential construction fell 1.0 percent in both April and March. Private residential construction is down 14.4 percent on a year-on-year basis - the same as in March.
Private nonresidential outlays rose a respectable 1.5 percent in April following an increase of 2.6 percent in March. Private nonresidential outlays are up 15.6 percent in April on a year-on-year basis, compared to up 16.4 percent in March.
Nonresidential strength was broad-based with only a few components being negative. By components nonresidential gains were seen in lodging, up 4.5 percent; office, up 0.7 percent; commercial, up 1.5 percent; power, up 2.5 percent; manufacturing, up 3.9 percent; educational, up 0.6 percent; and transportation up 1.9 percent.
By components nonresidential declines were seen in health care, down 0.5 percent; amusement, down 6.6 percent; and communication, down 0.4 percent. Religious was unchanged. Public construction advanced 0.7 percent in April, following a 1.6 percent jump the prior month. Public construction is up 9.4 percent year-on-year in April, compared to up 9.6 percent in March.
Today's construction report is in line with recent trends and should have little market impact. Markets are primarily on the sidelines, waiting for the May employment report that is to be released tomorrow morning along with the April personal income report.
Construction spending rose 0.2 percent in March, following a 1.5 percent gain in February. As has been typical in recent months, residential construction fell while nonresidential public construction rose.
Construction spending Consensus Forecast for April 07: 0.0 percent (flat)
Range: -0.5 to +0.5 percent
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Over the last year, a decline in residential outlays has pulled down year-on-year growth for overall construction outlays. Nonresidential and public outlays are positive with nonresidential actually strong. |
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