Construction spending fell for the third month in a row in April, declining 0.4 percent from March and 0.5 percent from a year earlier—the first year-over-year decrease since April 2019, according to an analysis by the Associated General Contractors of America of a new government report. Association officials warned that the decline in construction activity risks making the nation less competitive and will hurt economic growth.
“A pullback in many types of private nonresidential projects, as well as a sharp drop in homebuilding, contributed to the latest drop in construction spending,” said, Ken Simonson, chief economist of the Associated General Contractors of America. “Ever-changing announcements about tariffs on key construction inputs, along with potential retaliatory measures by U.S. trading partners, are making owners hesitant to commit to new projects.”
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