Widget Image
Follow PPD Social Media
Connect With PPD
Saturday, August 17, 2019
HomeNewsEconomyConstruction Spending Flat for April, Missing Consensus Forecast

Construction Spending Flat for April, Missing Consensus Forecast

New residential construction, hew homes, housing starts, building permits, depicted on blueprints. (Photo: AdobeStock)
New residential construction, hew homes, housing starts, building permits, depicted on blueprints. (Photo: AdobeStock)
New residential construction, hew homes, housing starts, building permits, depicted on blueprints. (Photo: AdobeStock)

Construction spending for April came in at an estimated seasonally adjusted annual rate of $1,298.5, a flat reading (±1.3%) that missed the consensus forecast. That’s 1.2% (±1.5%) below the April 2018 estimate of $1,314.7 billion.

PriorRevisedConsensus ForecastForecast RangeActual
Construction Spending – M/M ∆-0.9%0.1%0.4%-0.4% — 0.7%0.0 %
Construction Spending – Y/Y ∆-0.8%-1.2%

During the first four months of this year, construction spending amounted to $386.1 billion, 0.2% (±1.3%) above the $385.5 billion for the same period in 2018.

“While the April gave us a flat reading, the report for March was upgraded significantly to +0.1% from a previously reported -0.9%,” Tim Anderson, analyst at TJM Investments on the New York Stock Exchange (NYSE).”

“It’s also noteworthy that the Dow (^DJI) and S&P 500 (^SPX) have rallied over +0.5% since this and the ISM PMI were released at 10:00 am,” he added. “The Dow now sporting a gain of over +100 points and the S&P 500 is in the green by nearly 10 handles.”

Private Construction Spending

Spending on private construction came in at a seasonally adjusted annual rate of $954.0 billion, or 1.7% (±1.0%) below the revised estimate of $970.4 billion for March.

Residential construction came in at a seasonally adjusted annual rate of $499.3 billion in April, or 0.6% (±1.3%) below the revised estimate of $502.4 billion for March.

Nonresidential construction was at a seasonally adjusted annual rate of $454.7 billion, which is 2.9% (±1.0%) below the revised estimate of $468.0 billion for March.

Public Construction Spending

The estimated seasonally adjusted annual rate of public construction spending was $344.6 billion, which is 4.8% (±2.5%) above the revised estimate of $328.7 billion for March.

Educational construction was at a seasonally adjusted annual rate of $80.0 billion, 2.1% (±2.6%) above the revised estimate of $78.3 billion for March.

Highway construction was at a seasonally adjusted annual rate of $114.3 billion, 6.8% (±8.6%) above the revised estimate of $107.0 billion for March.

Written by
Staff Writing Group

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

No comments

leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.