Overall, construction spending increased 0.4% in April, less than expected by economists. Public construction spending dipped 1.2%, but spending on private nonresidential projects climbed 2.2%. The slump in government spending, totaling the lowest level since 2006, is attributed to $85 billion in federal spending cuts that took effect in March. "Construction has been so beaten down for so long, I think there is strong pent-up demand" in the housing market, said Russell Price, senior economist at Ameriprise Financial.
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