US construction spending rises less than expected

The US Commerce Department said today that construction spending in the United States rose 0.2% in April after rising by 1.0% in March. Analysts had expected construction spending to rise by 0.5% in April.

On an annual basis, spending on construction, which accounts for about 4% of GDP, rose to 9.8% in the twelve months through April, spending on public construction projects fell 0.6% in April and federal government spending fell 6.2% in April. Spending on private construction projects rose 0.4% in April, spending on residential projects rose 1.0% in April while spending on private non-residential construction such as gas and oil drilling declined 0.5% in April.