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US construction spending records biggest gain in two years
[WASHINGTON] US construction spending rebounded more than expected in April as investment in private construction projects notched its biggest gain since 2012, offsetting a drop in public outlays.
The Commerce Department said on Friday construction spending surged 1.8 per cent, the largest increase since January 2016, after an unrevised 1.7 per cent decline in March.
Economists polled by Reuters had forecast construction spending rebounding 0.8 per cent in April. Construction spending accelerated 7.6 per cent on a year-on-year basis.
In April, spending on private construction projects jumped 2.8 per cent, the largest increase since January 2012, reversing March's 2.6 per cent drop. Outlays on private residential projects shot up 4.5 per cent, the biggest rise since November 1993, following a 4.1 per cent plunge in March.
Spending on nonresidential structures rose 0.8 per cent in April after falling 0.6 per cent in the prior month.
Investment in public construction projects decreased 1.3 per cent after rising 1.2 per cent in March. Spending on federal government construction projects tumbled 10.2 per cent. That followed a 1.8 per cent increase in March.
State and local government construction outlays slipped 0.3 per cent after rising 1.1 per cent in March.