Construction spending during April 2022 was estimated at a seasonally adjusted annual rate of $1,744.8 billion, 0.2% (±0.8%) above the revised March estimate of $1,740.6 billion, according to the U.S. Census Bureau. The April figure is 12.3% (±1.3%) above the April 2021 estimate of $1,553.5 billion. During the first four months of this year, construction spending amounted to $520.8 billion, 12.4% (±1.0%) above the $463.3 billion for the same period in 2021.
In April, the estimated seasonally adjusted annual rate of public construction spending was $350.1 billion, 0.7% (±1.6%) below the revised March estimate of $352.7 billion. Highway construction was at a seasonally adjusted annual rate of $103.4 billion, 0.1% (±5.3%) below the revised March estimate of $103.5 billion. Educational construction was at a seasonally adjusted annual rate of $79.6 billion, 0.7% (±2.1%) below the revised March estimate of $80.1 billion.
Spending on private construction was at a seasonally adjusted annual rate of $1,394.7 billion, 0.5% (±0.7%) above the revised March estimate of $1,387.9 billion.
- Residential construction was at a seasonally adjusted annual rate of $891.5 billion in April, 0.9% (±1.3%) above the revised March estimate of $883.5 billion.
- Nonresidential construction was at a seasonally adjusted annual rate of $503.2 billion in April, 0.2% (±0.7%) below the revised March estimate of $504.4 billion.
Spending on nonresidential construction projects declined for the second month in a row in April as contractors coped with an all-time high for job openings, according to an analysis by the Associated General Contractors of America. Association officials said workforce shortages are suppressing the amount of construction activity that can take place and called for measures to encourage more people to pursue high-paying construction careers.
“Nonresidential construction spending is being held back by a paucity of qualified workers, not a lack of projects,” said Ken Simonson, the association’s chief economist. “With job openings at an all-time high and the industry’s unemployment rate at the lowest ever for April, finding workers is contractors’ top concern.”
“Despite upbeat contractor sentiment, nonresidential construction spending has been sliding during recent months,” said Associated Builders and Contractors (ABC) Chief Economist Anirban Basu. “The situation is even worse given that construction spending is measured in nominal terms, and therefore does not account for rapidly rising materials prices and compensation costs that have, according to ABC’s Construction Confidence Index, put downward pressure on profit margins.
“In spite of the overall decline in nonresidential construction spending, there are reasons to remain upbeat,” said Basu. “A number of segments hammered by the pandemic showed signs of life in April, with spending in both the lodging and amusement/recreation categories increasing on a monthly basis. Construction related to manufacturing also continues to rise as suppliers desperately strive to keep up with demand and reshoring momentum persists.”