Construction Spending Down in April Due to COVID-19
The construction industry was down overall by 1.9% compared to April of last year. The commercial segment was far less impacted than the residential segment. Some of the areas that felt the most pain was lodging, amusement & recreation, down 12%. Spending was also down considerably in categories in the public-sector, including education and streets & highways.
Construction was deemed an essential industry in most states which helped to mitigate spending decreases. Some states like California, New Jersey, Pennsylvania & New York were deemed nonessential which added to the decline.
As the country starts to open, nonresidential contractors will face many obstacles. Office space and storefronts have been vacated which decreases the demand for new construction. There will be less capital for lending. Construction is faring far better than other industries.