Construction spending increases 0.4 percent in April
Construction spending rose in April, and residential improvements for 2011 and 2012 are predicted to rise 0.7 percent in 2011 and 14.5 percent in 2012.
Construction spending increased 0.4 percent in April, but the first reported 1.4 percent gain in March was revised to a 0.1 percent rise, according to Reed Construction Data. Small April improvements in multi-family are likely to persist since these markets appear to be recovering.
Residential improvements (which includes remodeling, renovation and replacement work) are expected to rise 0.7 percent in 2011 and 14.5 percent in 2012, according to U.S. Census Bureau data.
A large April gain in residential remodeling is not a signal of recovery in these sectors and may be revised away or reversed in the next few months. Overall, the construction recovery is set to begin but remains on hold due to the recent weakening in the economy.