Construction Spending Falls Slightly
Ken Simonson’s May 29 -- June 3 issue of "The Data DIGest," reported that construction spending in April totaled $1.12 trillion at a seasonally adjusted annual rate (SAAR), down 0.4 percent from March and 3.9 percent from April 2007, the Census Bureau reported on Tuesday. Public construction spending slipped 0.3 percent for the month but rose 6.8 percent from April 2007; private residential spending plunged 2.3 percent and 21 percent; and private nonresidential spending climbed 1.6 percent and 15 percent.
Simonson, who is the chief economist at the Associated General Contractors of America, also noted that among private nonresidential categories, growth was notable for lodging, 7.6 percent and 45 percent; manufacturing, 3.5 percent and 25 percent; power, 2.9 percent and 33 percent; and office, 0.5 percent and 15 percent. Commercial (retail, warehouse and farm) construction was up 1.9 percent for the month but only 0.3 percent compared to April 2007.
The largest public category, educational, fell 0.3 percent for the month but rose 7.3 percent compared to April 2007, while highway and street construction inched up 0.1 percent from March and 5.2 percent from April 2007. New private single-family construction tumbled 4.4 percent for the month and 38 percent from a year ago; new multifamily rose 0.4 percent from March but slumped 13 percent from April 2007.
Price increases continue for construction materials. In the past few days, Simonson's Data DIGest readers reported immediate price increases for asphalt and aggregate; roofing products and metal wall panels, effective June 1-August 1; "a steel guardrail increase of 40 percent since February [and] rebar for concrete barrier jumped 23 percent in the last 30 days;" "a serious round of increases [for vinyl chloride resin for polyvinyl chloride (PVC), which] will impact pricing for plastic pipe, vinyl siding, vinyl flooring, and vinyl window pricing."



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