Spending on U.S. construction projects was unchanged in April as another decline in home construction was offset by a big gain in government spending on projects like highways and hospitals.
The Commerce Department said Monday that the flat reading followed a small increase of 0.1 percent in March, which was revised higher from an initial estimate that showed a sharp decline. Construction spending rose 1 percent in February.
The data suggests that Americans cut back on home renovations in April. And spending on new home construction was flat. Higher mortgage rates have weighed on home sales this year, though in recent weeks rates have dropped below 4 percent, potentially reviving sales. Commercial construction fell sharply in April, driven by a steep decline in construction of factories.
Construction spending in the private sector plunged 1.7 percent, the steepest in six years. Residential construction spending has fallen for four straight months.
On a year-over-year basis, permits for housing developments with five or more units are up 17.6 percent in Connecticut, to 870 units, according to U.S. Census Bureau statistics released last week by the state Department of Economic and Community Development. Single-family permits are up 13.6 percent, to 608.
Those declines were offset by a 4.8 percent surge in government construction spending to a record high of $299.4 billion, led by big gains in state and local government spending, which also rose to a record high.
Spending on highways and streets jumped 6.8 percent, while school construction rose 2.1 percent. Federal spending rose to $24.5 billion, the highest since July 2013.





