Construction Spending Unexpectedly Climbs in April

Spending on construction unexpectedly rose in April as the housing deterioration decelerated and more commercial projects got under way.

The 0.8 percent gain was the biggest since August and followed a revised 0.4 percent increase the prior month, the Commerce Department said today in Washington. Residential construction climbed 0.6 percent and work on power plants and factories propelled commercial construction up.
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“Residential construction may be bottoming,” said Steven Wood, president of Insight Economics LLC in Danville, California. “Over the next several quarters, federal stimulus dollars may support public construction activity despite weak state and local government funding.” [via Bloomberg]