Spending on construction projects saw a healthy 7.2% increase in April over the same month a year ago, according to new figures released by the U.S. Census Bureau.
The increase over March of this year was a more modest 1.2%.
Private construction in general has been moving steadily upward for all this year. Notes the Census: “Residential construction was at a seasonally adjusted rate of $845.4 billion in April,” which is above the “revised March estimate of $841.6 billion.”
Meanwhile, “nonresidential construction was at a seasonally adjusted rate of $655.3 billion in April, 2.4% above the revised March estimate of $640.0 billion.”
“The nonresidential sector is still chugging along,” noted Nick St. Denis, the director of research for Key Media & Research.
In comments published by the US Glass News Network, St. Denis remarked: “Volume of demand continues to show strength, and improving pricing is helping drive these larger year-over-year increases.”
Anirban Basu, chief economist with the Associated Builders and Contractors, remarked in a statement: “Manufacturing-related construction spending growth continues to lead the way, but even segments that had been weak such as lodging are picking up steam.”
Also in a statement, Joseph Natarelli, construction leader with the New York-based Marcum Accountants and Advisors, acknowledged that the construction industry faces a number of current challenges. “However,” he remarked “there are also opportunities, such as the need for new infrastructure and continued growth of the residential market.”
In fact, construction spending in the manufacturing sector has seen a 103.8% increase since last spring; with lodging up by 40.8%; conservation and development seeing a 31% increase; and water supply project spending posting a year-over-year gain of 26.6%.
By Garry Boulard
