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Construction spending posts modest 0.2% gain in April

By The Associated Press - | Jun 1, 2021

An advertising sign for building land stands in front of a new home construction site in Northbrook, Ill., Sunday, March 21, 2021. The red-hot U.S. housing market is widening the gap between what a home is objectively worth and what eager buyers are willing to pay for it. Fierce competition amid an ultra-low inventory of homes on the market is fueling bidding wars, prompting a growing share of would-be buyers to sweeten offers well above what sellers are asking. (AP Photo/Nam Y. Huh)

WASHINGTON (AP) — U.S. construction spending rose a modest 0.2% gain in April as strength in housing offset further weakness in nonresidential construction.

The April increase is 9.8% above the construction level in April 2020. Through the first four months of this year, construction activity is 5.8% higher than the same period in 2020.

Home building, a standout performer over the past year, rose 1% in April while nonresidential construction fell 0.5%. Spending on government building projects fell 0.6% in April.