April construction spending falls 2.9% as virus upends work

June 01, 2020 - 9:40 am

WASHINGTON (AP) — U.S. construction spending fell 2.9% 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% in April with single-family construction down 6.6% and the smaller apartment segment down 9.1%

Construction of nonresidential projects fell 1.3% 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% 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.

AP Editorial Categories: 
Comments ()