April Construction Spending Falls 2.9 Percent as Virus Upends Work


U.S. construction spending fell 2.9 percent in April with broad declines across all building activity as shutdowns hobbled projects and workers were told to stay home. 

The Commerce Department said that the April decline followed a basically flat reading in March. 

Spending on residential construction dropped 4.5 percent in April with single-family construction down 6.6 percent and the smaller apartment segment down 9.1 percent 

Construction of nonresidential projects fell 1.3 percent with office buildings, hotels and the sector that includes shopping centers all down. 

Spending on construction by the federal government and state and local governments was down 2.5 percent in April 

There is hope that with government stay-at-home orders being lifted, construction activity may rebound. However, many economists are worried that the recovery from the sharp recession which has seen millions of workers lose their jobs may take a good deal of time.