Construction workers use wood and lumber to build residential homes in Irvine, California, U.S., March 28, 2025. REUTERS/Mike Blake/File Photo
Share
Getting your Trinity Audio player ready...
|
WASHINGTON(Reuters) – U.S. construction spending unexpectedly fell in April, weighed down by a decline in outlays on single-family housing projects amid higher borrowing costs and a rising supply of unsold homes.
The Commerce Department’s Census Bureau said on Monday that construction spending dropped 0.4% after a downwardly revised 0.8% decline in March. Economists polled by Reuters had forecast construction spending rebounding 0.3% after a previously reported 0.5% decline in March.
Spending decreased 0.5% year-on-year in April.
Spending on private construction projects slipped 0.7%. Investment in residential construction dropped 0.9%, with outlays on new single-family housing projects declining 1.1%.
Home construction is also being constrained by an unsettled economic outlook amid President Donald Trump’s aggressive trade policy, including a recent doubling of steel and aluminum duties to 50% from 25%. New housing inventory is at levels last seen in 2007, while the supply of previously owned homes is the highest in more than four years, leaving builders with limited scope to break ground on new projects.
Outlays on multi-family housing units dipped 0.1% in April. Investment in private non-residential structures like offices and factories eased 0.5%.
But spending on public construction projects increased 0.4%. State and local government spending rose 0.3%, while outlays on federal government projects shot up 2.7%.
—
(Reporting by Lucia Mutikani; Editing by Andrea Ricci)
RELATED TOPICS:
After Years of Undrinkable Water, Our Rural California Community Finally Has Hope
11 hours ago
Musk Calls Trump’s Big Beautiful Bill ‘a Disgusting Abomination’
12 hours ago
US Tariffs Could Put Air Safety at Risk, Aerospace and Airline Industries Warn
12 hours ago
Trump to Sign Order Doubling Metals Tariffs, White House Says
12 hours ago
Millions Invested in Land for Innovation Village. Will It Be a Fresno Game-Changer?
13 hours ago

Hegseth Orders the Name of Gay Rights Activist Harvey Milk Scrubbed From Navy Ship

Knicks Fire Coach Tom Thibodeau After First Eastern Conference Finals Berth in 25 Years

After Years of Undrinkable Water, Our Rural California Community Finally Has Hope
