Heavy construction spending declined 0.4% in April, the fifth consecutive month to month drop. A large gain in power construction spending prevented the April decline from pushing over 1%. The gain in power construction is off trend with the expected slipping of power construction activity through 2012 as federal subsidies are cut sharply. Overall, heavy spending is expected to be sluggish through 2012 but will recover to the 2009 level next year. Congress appears committed to maintain but not to increase highway funding through 2012. Average growth in the private economy has set off recovery in the communications market and will initiate recovery in the water and sewer market early in 2012.

Heavy construction spending is forecast to decline 2.7% in 2011 and then rise 4.0% in 2012.

Similar Posts:

• Residential Construction Spending Increased 2.4% in March
• Economy shrinks by more than previously thought, claims ONS
• Partly caused by inflation, U.S. home starts stumbled in April
• Confirming the pause, the U.S. added only 54,000 jobs in May
• Street construction delays on South Staples Street expected during the next year