Home improvements make up much of construction spending in April

Home Construction

Homeowners conducting home remodeling projects contributed to a modest gain in construction spending in April, according to the Department of Commerce.

Construction spending increased 0.4 percent in April from a month earlier to nearly $765 billion for the entire year, the department's figures show. Though a small rise, the jump in spending trumped expenditures on building from March by 0.3 percent.

While home improvement spending made up a considerable portion of the construction market in April, home construction performed poorly. Experts say the homebuilding market is still struggling to improve as the effects from the housing crisis linger.

"We're looking for some recovery from the very weak numbers at the start of the year," Jim O'Sullivan, chief economist at MF Global, told Bloomberg. "The trend in construction is flat."

John Canally, an investment strategist at LPL Financial, told the news source a substantial amount of existing homes on the market has continued to keep new home construction down this year.

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