US Construction Spending lost steam - Wells Fargo

Construction spending dropped 1.4% during April. Analysts from Wells Fargo, explained that the decline was the largest in a year but follows a very strong spring. They also noted upward revisions to previous reports.
 
Key Quotes:

“Outlays for public and private construction projects came in at a $1,218.5 billion annual rate in April. The 1.4 percent dip was tempered by the upward revisions to the previous month that revealed outlays were running at a record high in March.”

“Mild winter weather earlier this year made for a busy spring construction season. Spending in the first four months of 2017 was up 5.8 percent from the previous year.”

“Private spending on residential projects slowed in April on softer multifamily outlays, while spending was up in single-family. Housing starts data were similar for April, with multifamily starts down on the month. Multifamily permits were better, however, which bodes well for this category in coming months.”

“Public construction spending continues to disappoint. Outlays through April were down 5.2 percent on a year-to-date basis."