WASHINGTON (AP) – U.S. construction fell in April by the largest amount in a year, reflecting weakness in homebuilding, non-residential construction and government projects.
The Commerce Department reported Thursday that construction spending fell 1.4 percent in April, the biggest drop since a 2.9 percent fall in April of last year. The decline left spending at a seasonally adjusted annual rate of $1.22 trillion.
Construction activity has been one of the bright spots for the economy over the past year, and the big decline in April is expected to be temporary. Analysts are forecasting that construction will provide continued fuel for the economy in the coming year.
The April result followed a revised 1.1 percent increase in March, which had pushed construction spending to a record high of $1.24 trillion.
Residential construction slipped 0.7 percent, the biggest drop since a 1.1 percent decline in September of 2016. The Commerce Department reported two weeks ago that new home construction was down 2.6 percent in April, but analysts blamed much of that weakness on temporary factors.