The amounts which are being spent on home construction reached their highest value to be ever recorded in the last five years in the month of April. This shows a rise in activity levels, indicating that the homebuilding pace has somewhat improved.
In the month of April, construction spending rose by around 0.2% and reached an amount of $953.5 million. Ever since the March of 2009, this is the highest value to ever be recorded is what the Department of Commerce told the press. Indeed, this rise is not that high and is less than what was expected. The picture still is not bleak and the home building industry is showing positive signs.
For just single family homes, construction spending increased by 1.3% and for multifamily homes, it rose by 2.7%. However, the remodeling sector showed a decline, with the rates, falling by around 2.2%.
Recently, the government revised construction levels for the month of March and improved them by 0.6%. This combined with activity levels noted in April, is a representation of the fact that the home building industry is finally putting the effect of a severe winter season behind. The analysts are hopeful that the figures will rise and construction will grow in the months to come.
An economist told the press that the report published by the Department of Commerce is a positive one because it indicated higher values for construction. He added that construction had a significant effect on GDP.
Considering the past few months, the rise in the month of April is the third consecutive increase. In the month of January, the figures decline by around 0.4%, but since then they have continuously risen.
A financial report of the first quarter showed that a slack in home construction had quite a significant effect on the economy, and has pushed the gross domestic product down. In the period between January and March, the economy contracted by around 1%. In the quarter between April and June, analysts are hopeful recovery will be achieved at a rate of 3.8%. The industry experts believe that hiring will increase notably, leading to a rise in consumer spending. The effect will not just translate into the construction industry but other sectors as well.