Construction spending fell 1.4% in April after being revised up to its all time high in March. The losses were broad-based. Public sector construction fell much more rapidly than private construction, which was off less than 1% during the month. The decline in public sector construction was felt at all levels of government including federal, state and local. Hopes for investment in public infrastructure are fading. The president’s proposed budget included very little for infrastructure. On Capitol Hill now, infighting over tax reform and spending priorities have intensified.
The private sector decline in construction spending last month was smaller. While the apartment market continued to fade, single-family home construction expanded.