Steel Markets

Nonresidential Boosts April Construction Spending

Written by Laura Miller

June 1, 2023

US construction spending jumped in April on strength in nonresidential and multifamily home building.

constructionTotal construction spending during the month was estimated by the US Census Bureau to be $1,908.4 billion at a seasonally adjusted annual rate (SAAR). This was a 1.2% increase from March’s revised estimate of $1,885.0 billion and a 7.2% rise from $1,780.9 billion in April 2022.

As the Associated General Contractors of America (AGC) pointed out, “widespread gains in nonresidential and multifamily construction spending offset a continuing plunge in single-family homebuilding.”

April spending on nonres projects reached a SAAR of $1,543 billion. This was 1.9% higher month-on-month (MoM) and 25.3% higher than the same month last year.

Notable within the nonres sector was spending on manufacturing construction, which rose 8.6% MoM and more than doubled year-on-year to a SAAR of $189.3 billion.

While multifamily residential spending spiked 24.9% YoY to a SAAR of $125.6 billion, new single-family construction spending tumbled 24.7% to $362.4 billion.

“Today’s report shows there has been no letup in most categories of construction despite worries about tighter credit and a possible slowdown in the broader economy,” commented AGC chief economist Ken Simonson.

“The top concern for most contractors is finding qualified workers, not projects to bid on,” Simonson noted.

By Laura Miller, laura@steelmarketupdate.com

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. She has held a variety of positions within the steel industry since 2007, including reporting and editing for Steel Business Briefing/Platts, the Association for Iron and Steel Technology, and Kallanish Commodities, as well as marketing for what was then known as ThyssenKrupp Steel USA (now AM/NS Calvert). After a five-year hiatus working across other industries, she returned to steel in 2021 and has covered the flat rolled, tubular, and trade areas of the industry. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania. She can be reached at laura@steelmarketupdate.com or 724-759-7869.

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