U.S. construction spending and hiring still going strong

marketwatch2023-06-01

The construction industry is humming along as companies and the government increase spending on projects across America.

Spending on construction projects rose 1.2% in April to $1.91 trillion, the Commerce Department reported Thursday. 

Wall Street was expecting construction spending to rise 0.1% in April.

Construction spending reveals how much the government and private companies spend on projects, from housing to highways. The more the U.S. spends on construction, the higher the level of economic activity.

Over the past year, construction spending is up 7.2%. 

In terms of residential real-estate, private residential construction rose 0.5%. 

Single-family construction fell by 0.8%, but was offset by multifamily construction, which increased by 0.6%.

Spending on public residential construction fell by 1%.The construction industry more broadly is still going strong and is boosting the jobs market. The sector added 64,000 jobs in May, according to ADP’s national employment report. That’s a little more than a fifth of all jobs created by the private sector.

Stocks DJIA, -0.04% SPX, +0.25% were mixed in early trading on Thursday. The 10-year Treasury note TMUBMUSD10Y, 3.594% fell below 3.6%

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