US construction spending inched higher in April from the prior month, new US Census Bureau data show.
Total US construction spending was at a seasonally-adjusted annual rate of $2.17 trillion in April, up 0.4pc from March and 0.9pc above year-prior levels.
Private residential spending increased by 0.8pc to a seasonally-adjusted annual rate of $910bn in April from March and was up by 1.7pc from a year earlier. Single family residential spending rose by 1.4pc to a $416bn rate in April from the prior month and was down by 2.9pc from a year earlier. Multifamily construction fell by 0.3pc to a $116mn annual rate from the prior month.
Private manufacturing spending fell by 1.2pc to $185bn in April from the prior month, continuing a 15-month slide and remaining 18pc below April 2025.
The health of the construction sector, especially for residential building, is critical to polyvinyl chloride (PVC) producers who supply much of the pipes, windows, doors, and siding for new homes.
Rising inflation and general economic uncertainty are driving would-be buyers away from new homes, especially as mortgage rates remain elevated and the US Federal Reserve may begin hiking its target interest rate by the end of the year, data from CME FedWatch show.
Demand this year has remained lackluster, even as homebuilders look to the 21st Century ROAD to Housing Act to ignite demand. The legislation is currently working through Congress.
- Total construction spending rose in April.
- Growing year-to-year private residential spending outweighed shrinking nonresidential spending.
- Public construction spending rose, rising for a fourth consecutive month.
- Manufacturing spending continues its prolonged contraction.
