A number of new addresses may have been added to public property records in residential areas across America during March.
The latest Value of Construction Put in Place Survey disseminated by the U.S. Department of Commerce outlined an overall drop in construction spending during the second month of 2013, but a notable increase in the amount spent on residential building projects. After increasing by 1.5 percent in February, nationwide public construction spending declined 1.7 percent to an annual rate of $856.72 billion in March, marking the lowest level exhibited since August and representing a seven-month low. Private construction also sustained a decrease, moving down 0.6 percent to a yearly rate of $598,418.
Spending on both public and residential construction projects experienced a 0.4 percent gain during the month, continuing the upward trend observed for the past several months. The total amount spent during March on public construction was $301,638, increasing 0.7 percent from February's amount of $299,662 and 17.8 percent from the $256,156 spent in March 2012. Private residential construction projects totaled $294,948, having moved up 0.4 percent from the preceding month's figure of $293,776 and 18.2 percent from the $249,452 spent during the same month the year prior.
A potential cause for the drop in overall spending may be the heightened material costs imposed upon construction professionals recently. While increases in housing demand have driven up prices -which could offset production expenses - building in other sectors has been affected significantly.
Substantial improvement in employment seen during April
Though housing construction workers may not be as busy as in recent months, ADP's National Employment Report showed an increase of 119,000 jobs in April. The monthly report, which is compiled using ADP's actual payroll data, measures the differences in total nonfarm private employment on a seasonally-adjusted basis each month.
According to the organization, small businesses added 50,000 jobs, while medium companies created 26,000 new positions and large businesses increased employment opportunities by 43,000. Though considerable gains can be seen in the recent figures, president and chief executive officer of ADP Carlos Rodriguez said the recent increase exhibited far less growth than that recorded in past months.
"During the month of April 2013, U.S. private sector employment increased by 119,000 jobs, representing the slowest pace of expansion since September 2012," said Rodriguez.
With residential construction seeing increases during March and job continuing to be added to the labor market in April, the number of consumers who can afford to purchase homes may rise, while the number of foreclosed homes could decrease.