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April construction spending falls 2.9% as coronavirus upends work

FILE - In this May 27, 2020 file photo, workers build a protective barrier as construction resumed on the New York Islanders' new arena, in Elmont, N.Y. U.S. construction spending fell 2.9% in April with all major sectors dropping as the shutdowns from the coronavirus had a big impact on the construction industry. The Commerce Department said that the April decline followed a basically flat reading in March (AP Photo/Kathy Willens, File) FILE - In this May 27, 2020 file photo, workers build a protective barrier as construction resumed on the New York Islanders' new arena, in Elmont, N.Y. U.S. construction spending fell 2.9% in April with all major sectors dropping as the shutdowns from the coronavirus had a big impact on the construction industry. The Commerce Department said that the April decline followed a basically flat reading in March (AP Photo/Kathy Willens, File)

By MARTIN CRUTSINGER / AP Economics Writer June 1, 2020 2 min read

WASHINGTON (AP) – U.S. construction spending fell 2.9% in April, the largest drop in 18 months, with broad declines across all building activity as shutdowns hobbled projects and workers were told to stay home.

The Commerce Department said that the April decline was the biggest monthly drop since a 3.% fall in October 2018. It followed a basically flat reading in March.

Spending on residential construction dropped 4.5% in April with single-family construction down 6.6% and the smaller apartment segment down 9.1%

Construction of nonresidential projects fell 1.3% with office buildings, hotels and the sector that includes shopping centers all down.

Spending on construction by the federal government and state and local governments was down 2.5% in April