Dive Brief:
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Spending on construction topped $1 trillion in April, climbing to its highest level in six years, the Census Bureau reported on Monday.
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After rising just 0.5% in March — after the Census Bureau's revised its figures — spending increased by 2.2% last month, according to the report. That included a 0.6% gain in new home construction and a 3.1% boost in non-residential, non-governmental building. Construction spending by state and local governments grew by 3.3% — the most in three years.
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Construction activity in April was 4.8% higher than in April 2014, the report noted.
Dive Insight:
The positive numbers emerged a week after the government reported that the overall economy shrank during the first quarter of the year. Economists have predicted a better second quarter, partly due to anticipation of a surge in homebuilding.
A spending increase in the construction sector reveals that the pace of building has increased as contractors look to increased demand for commercial space and new homes. In addition, the quicker pace of building likely means the industry will continue to create jobs.
An analysis of the Census data by Associated Builders and Contractors revealed that spending increased in every non-residential construction sector — from manufacturing to utility to religious — except communication-related projects, which fell 5.9% between March and April.
