Today’s report that April construction spending increased 0.8% from March does not mean that the construction rebound has begun. Total spending in April was 0.1% below the total initially reported for March because both February and March construction spending were revised about 1% lower. Removing the often mis-measured residential remodeling spending from the total, construction spending has drifted erratically but modestly lower since the beginning of the year. This is generally consistent with the forecast for a 12% decline in 2009 spending large due to the huge declines in November through January.

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