by Calculated Risk on 6/02/2008 10:11:00 AM

Construction spending declined in April for residential, but increased to for non-residential private construction.

From the Census Bureau: March 2008 Construction Spending at $1,123.5 Billion Annual Rate

Spending on private construction was at a seasonally adjusted annual rate of $823.8 billion, 0.5 percent below the revised March estimate of $827.7 billion.

Residential construction was at a seasonally adjusted annual rate of $435.8 billion in April, 2.3 percent below the revised March estimate of $445.8 billion.

Nonresidential construction was at a seasonally adjusted annual rate of $388.0 billion in April, 1.6 percent above the revised March estimate of $381.8 billion.

Click on graph for larger image.

The graph shows private residential and nonresidential construction spending since 1993.

Over the last couple of years, as residential spending has declined, nonresidential has been very strong. It appeared earlier this year that the expected slowdown in non-residential spending had arrived.

However, non-residential spending in April set a new nominal record (seasonally adjusted annual rate). This is a little surprising given tighter lending standards and reduced capital spending plans.