WASHINGTON — Construction spending surged by 1.8% in April, well above the 0.8% gain expected, mainly due to a 4.5% jump in private residential construction, data released by the Commerce Department Friday morning showed.
Analysts surveyed by MNI had expected total construction spending to rise by 0.8%, rebounding from March's surprise 1.7% drop. March construction was unrevised, as February was revised up slightly to a 1.2% rise from the 1.0% gain previously reported.
Private residential construction rose by 4.5% in the month, the largest gain since November 1993 to the highest level since October 2006. Home building ex. new homes, also known as remodeling, saw a large 11.6% rise, according to an MNI calculation.
Also based on an MNI calculation, total new homes rose by 0.7%. Single-family building was unchanged, while multi-family building posted a 3.6% rise.
Adding to the gain in private residential, private nonresidential construction rose by 0.8% in April. The categories within were all up, except for decreases in commercial and amusement and recreation.
Following a strong upward revised 1.2% rise in March, public construction spending fell 1.3% in the April.
Public construction was dragged by Federal construction spending's 10.2% drop and State and Local spending dipping 0.3%.
