Construction spending remains strong

Net of revisions, April data for construction spending was close to expectations and still reasonably strong. Total spending is up over 8% in the past year, with most of the gains coming from the residential sector, where spending has been growing at double-digit rates for more than two years. Residential construction spending is now up over 60% from its June 2009 low, and total construction spending is up over 25% from its early 20011 low. This is a significant and ongoing turnaround in the most-depressed sector of the economy, no matter how you measure it.