Yesterday, the Commerce Department reported that construction spending dipped 1.4% from March to April. Spending amounted to a seasonally adjusted annual rate of $1.219 trillion, which was below March’s $1.236 trillion. Though there was a drop from March to April, last month’s construction spending figure is 6.7% ahead of the April 2016 mark and spending in the first four months of 2017 is 5.8% above the same period last year.
Per Commerce Department revisions to previous month’s spending results, construction spending grew each month from January through March, before April’s drop. Analysts are still forecasting an overall growth in construction spending for 2017. Some analysts are predicting as much as a 5% jump from 2016.
President Trump’s 2018 budget proposal outlines $200 billion set aside for transportation projects spread over the next 10 years. If this is implemented, it would generate $1 trillion in new investments in U.S. infrastructure. There are uncertainties and complications surrounding this plan, including lack of certainty for the budget and a skilled labor shortage.
By the Numbers: April 2017 Construction Spending
- Total Construction– $1,219 billion
- Total Private Construction– $943 billion
- Total Public Construction– $275.3 billion
- Residential Construction– $522 billion
- Nonresidential Construction -$696 billion
- Commercial– $80 billion
For more information on April 2017 construction spending, click here.