The U.S. Census Bureau announced that construction spending during April 2019 was estimated at a seasonally adjusted annual rate of $1.3 trillion.
Although April’s rate is nearly the same as March’s, the organization indicated April’s spending is 1.2% below the April 2018 estimate of $1,314.7 billion.
Additionally, spending on private construction was at a seasonally adjusted annual rate of $954 billion, 1.7% below the revised March estimate of $970.4 billion.
Of that, residential construction spending was at a seasonally adjusted annual rate of $499.3 billion in April, which is 0.6% below the revised March estimate of $502.4 billion.
April’s Housing Market Index revealed that although homebuilders were optimistic about the market, labor shortages remained a prominent concern.
In fact, while the index measuring current sales conditions rose to 69 points, expectations for the next six months fell to 71.
“Ongoing job growth, favorable demographics and a low-interest rate environment will help to modestly spark sales growth in the near term,” NAHB Chief Economist Robert Dietz said. “However, supply-side headwinds that are putting upward pressure on housing costs will limit more robust growth in the housing market.”