Nonresidential construction spending decreased 0.4% from March to April but is up 6.6% compared with April 2021, according to www.abc.org.
For public construction, spending decreased 0.7% for the month but is up 1.8% year-to-date. Private nonresidential spending fell 0.2% from March to April and is up 10.1% year-to-date.
“Despite upbeat contractor sentiment, nonresidential construction spending has been sliding during recent months,” said Associated Builders and Contractors Chief Economist Anirban Basu. “The situation is even worse given that construction spending is measured in nominal terms and therefore does not account for rapidly rising materials prices and compensation costs that have, according to ABC’s Construction Confidence Index, put downward pressure on profit margins.
“In spite of the overall decline in nonresidential construction spending, there are reasons to remain upbeat,” Basu continued. “A number of segments hammered by the pandemic showed signs of life in April, with spending in both the lodging and amusement/recreation categories increasing on a monthly basis. Construction related to manufacturing also continues to rise as suppliers desperately strive to keep up with demand and reshoring momentum persists.”
