(Bloomberg) -- U.S. construction spending is going in differentdirections depending on whether it's spearheaded by governmentsor the private sector, with a surge in public outlays masking aslump in building by businesses.
Overall spending was little changed in April from the priormonth at an annual rate of $1.3 trillion, according to a reportMonday from the Commerce Department, below analyst forecasts fora 0.4% increase. But the details showed private constructionplunged 1.7% from March, the worst drop in six years, whilegovernment building jumped 4.8%, with the biggest boost infederal outlays since 2017.
Public spending this year has jumped more than 10% in severalinfrastructure categories including highways and streets, sewageand waste disposal and water supply. In the private sector,single-family home construction -- down 7.1% year-to-date -- isa major factor in the slump, while commercial and communicationbuilding have also seen notable declines.
While infrastructure investment may be long overdue in parts ofthe country, the data could add to concerns that the economy isslowing more broadly. Investors have been increasing bets inrecent weeks that the Federal Reserve will cut interest rates,as a segment of the Treasury yield curve suggests a recession iscoming based on the pattern from prior expansions.
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