The Construction spending among residential, government buildings and industrial segments rose 2.7 percent in April. Construction of offices and retail declined.
According to Ian Shepherdson, chief U.S. economist at High Frequency Economics the government tax credits drove residential increases and nonresidential activity is unreliable. “We expect a downward revision next month,” he said downplaying the figures. But home builders were optimistic.
Former CEO of luxury home builder Toll Brothers Robert Toll said, “It appears our business has finally emerged from the tunnel and into a bit of daylight.”