Residential Construction Inches Up: Commerce Dept.

U.S. residential construction spending rose slightly in April, reversing seven months of declines, according to data released today by the Commerce Department.

April residential construction was up a seasonally adjusted 0.7 percent over the revised March figures, for an annual rate of $249.2 billion. Total construction spending was up for the second month in a row, rising 0.8 percent to an annual rate of $968.7 billion.

The April survey is the first time residential construction has increased since August. Overall, residential construction is down 35 percent from its April 2008 level, when it totaled $383.5 billion. Total construction is down 10.7 percent for the year, from an estimate of $1,085.2 billion in April 2008.

Private construction rose for the second month in a row, while public construction was down slightly, as federal fiscal stimulus spending apparently has yet to make its mark on the construction industry. Private construction spending was up 1.4 percent, to $657.3 billion, while public spending fell 0.6 percent, to $311.4 billion.

Meanwhile, personal income rose also rose slightly in April after declining in the first three months of the year, according to a separate Commerce Department report issued today. The report said the increase was due in part to reduced personal taxes and increased social benefit payments associated with the American Recovery and Reinvestment Act of 2009. Private wages and salaries were essentially unchanged from the month before.

Personal spending decreased 0.1 percent, by $9.7 billion, even as disposable income increased 1.1 percent. The personal saving rate rose to 5.7 percent of disposable income, to $620.2 billion, up from 4.5 percent, of $488.7 billion in March.