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Construction Spending Slips in April06-01-06 | News
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Construction Spending Slips in April



WASHINGTON D.C. ?EUR??,,????'??+ Construction spending in April fell slightly to a seasonally adjusted rate of $1.196 trillion, the Commerce Department reported Thursday.

The 0.1 percent decline from March’s level was still 8.5 percent greater than the April 2005 level.

During the first four months of this year, construction spending amounted to $349.3 billion, 8.9 percent above the $320.6 billion for the same period in 2005.

?EUR??,,????'??The year-to-date totals show that, so far, the apparent decline in residential construction is limited to improvements, which dropped 10 percent, and not a slowdown in new single-family or multi-family building, which are up 13 and 19 percent, respectively,?EUR??,,????'?? Ken Simonson, chief economist of The Associated General Contractors of America (AGC), said.

Spending on private construction was at a seasonally adjusted annual rate of $933.3 billion, 0.1 percent below the revised March estimate of $934.2 billion. Residential construction was at a seasonally adjusted annual rate of $657.1 billion in April, 1.1 percent below the revised March estimate of $664.6 billion. Nonresidential construction was at a seasonally adjusted annual rate of $276.2 billion in April, 2.5 percent above the revised March estimate of $269.5 billion.

?EUR??,,????'??Among the major private nonresidential construction categories, manufacturing and ?EUR??,,????'??multi-retail?EUR??,,????'????EUR??,,????'??+ shopping centers, shopping malls, and general merchandise stores?EUR??,,????'??+stand out, with year-to-date increases of 22 and 37 percent, respectively,?EUR??,,????'?? Simonson said. ?EUR??,,????'??There was 25 percent growth for hospital construction, 18 percent for lodging, and 14 percent for office construction.

In April, the estimated seasonally adjusted annual rate of public construction was $262.6 billion, 0.2 percent below the revised March estimate of $263.1 billion. Educational construction was at a seasonally adjusted rate of $67.5 billion, 1.2 percent below the revised March estimate of $68.3 billion, Highway construction was at a seasonally adjusted annual rate of $72.9 billion, 0.4 percent above the revised March estimate of $72.6 billion.

?EUR??,,????'??On the public side, the two largest categories?EUR??,,????'??+educational and highway and street construction?EUR??,,????'??+posted year-to-date increases of 11 and 12 percent, respectively,?EUR??,,????'?? Simonson said. ?EUR??,,????'??Most other public categories also rose.?EUR??,,????'??

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