Macro Flash Report

Construction Spending


Earlier this week, April’s Construction Spending (CPIP) data came in below expectations for the 4th straight month, showing slight declines. Much like in manufacturing, this year’s construction demand has disappointed, however, unlike in manufacturing YoY spending remains firmly positive.

In April, Construction Spending MoM declined by -0.1%, missing the market expected 0.2% increase and following March’s -0.2% decrease. This marks the fourth consecutive month of downside surprises and the second consecutive month of declines.

Public spending fell by -0.2%, driven by a -0.3% drop in residential spending and a -0.2% decline in non-residential projects. Notably, education and highway construction, the two largest categories, both showed declines.

Private spending also decreased, shrinking by -0.1%, mainly due to a -0.3% decline in non-residential spending. Significant drops were seen in religious (-3.5%), educational (-3.1%), healthcare (- 2.9%), and commercial (-1.1%) sectors. However, the residential segment grew by 0.1%, supported by a 0.1% increase in single- family projects, although the multi-family segment felly by – 0.3%.

**Despite this recent flatlining, year-over-year shows a 10% increase in construction spending through April.