WASHINGTON, June 1 U.S. construction spending increased more than expected in April, boosted by single-family homebuilding, though rising mortgage rates amid the war with Iran continued to cast a shadow over the housing market.
The Commerce Department’s Census Bureau said on Monday that construction spending rose 0.4% after a downwardly revised 0.2% increase in March
Economists polled by Reuters had forecast construction spending gaining 0.2% after a previously reported 0.6% rise in March. Construction spending increased 0.9% on a year-over-year basis in April. Spending on private construction projects advanced 0.4% after gaining 0.2% in the prior month.
Investment in residential construction climbed 0.8% after rising 0.6% in March. Spending on new single-family housing projects increased 1.4%. Mortgage rates have shot up as the U.S.-Israeli war with Iran stoked inflation.