WASHINGTON (AP) – U.S. construction spending fell in April by the biggest amount in five years, dragged by declines in housing, commercial construction and spending on government projects.
Construction spending dropped 1.8 percent in April after a 1.5 percent gain in March, the Commerce Department reported Wednesday. It was the biggest monthly decline since a 4.1 percent plunge in January 2011.
Spending on housing fell 1.5 percent, nonresidential building was also down 1.5 percent and spending on government projects declined 2.8 percent.
The drop in overall construction was unexpected. Private economists had been forecasting a gain of around 0.6 percent. Housing construction has been a bright spot for the economy in recent months. In the first quarter, residential investment grew at a sizzling annual rate of 17.2 percent.
The April report showed widespread declines. The fall in housing reflected a 3.1 percent drop in apartment construction, a volatile category, and no change in the level of activity for single-family construction.