Total construction spending continued to push higher in April, now up for the third consecutive month. Total spending came in at a $1.908 trillion rate, up 1.2% from March and up 7.2% from a $1.781 trillion rate in April 2022. Spending on both non-residential and residential projects increased in April, climbing 1.9% and 0.4%, respectively.
The second estimate of Q1 2023 Gross Domestic Product was revised slightly higher from the initial estimate to show 1.3% annual growth. The increase in the second estimate came from increases in consumer spending, exports, federal government spending, state and local government spending, and nonresidential investment.
After declining in March, new residential construction rebounded in April. The April new housing starts came in at a 1.401 million unit rate, up 2.2% from March but down 22.3% from the 1.803 million unit rate in April 2022. This is the twelfth consecutive month in which starts declined on a year-over-year basis.
Shipments of heating and cooling equipment increased for the second consecutive month after sliding the previous five months. HVAC shipments totaled 2.007 million units in March, up 20.5% from February but were still 11.0% down from 2.256 million units in March 2022. This is the twelfth consecutive month in which shipments declined on a year-over-year basis.
