After a disappointing March, the nation’s nonresidential construction industry bounced back moderately in April. According to the June 3 release by the U.S. Census Bureau, nonresidential construction spending increased 0.7 percent in April, with outlays increasing to a seasonally adjusted annualized rate of $552.45 billion. However, nonresidential construction spending is down 2.1 percent from one year ago.
Privately financed projects primarily drove spending gains in April, with private nonresidential construction spending rising 2.2 percent for the month and 0.6 percent on a year-over-year basis. Public nonresidential construction spending dipped 1.1 percent for the month and is down 5.2 percent compared to April 2012.
Eight of the sixteen nonresidential construction sectors posted increases in spending for the month, including power, up 7.8 percent; sewage and waste disposal, up 7.7 percent; and public safety, up 5.6 percent. Spending in other growth sectors was up less than 1 percent. Five sectors have registered increases in spending on a year-over-year basis, including lodging, up 16.6 percent; transportation, up 11.4 percent; manufacturing, up 2.1 percent; commercial, up 1.9 percent; and office, up 1.6 percent.
In contrast, eight nonresidential construction sectors experienced spending declines for the month, with the largest decreases were in religious, down 11.3 percent; conservation and development, down 5.6 percent; and communications, down 4.6 percent. Sectors recording the largest losses from one year ago include conservation and development, down 11.5 percent; educational, down 10.7 percent; and amusement and recreation, down 10.5 percent.
Residential construction spending slipped 0.2 percent for the month, but is up 18.3 percent from the same time last year. Total construction spending-which includes both nonresidential and residential spending-was up 0.4 percent for the month and is up 4.3 percent from April 2012.