freeus: from Dow Jones after market:
<<Meanwhile, construction spending in April declined for the first time
since last October amid broad-based drops in private and public spending.
The Commerce Department said total construction put in place fell 2.4%
in April to a seasonally adjusted $697.4 billion annual rate. That's the
largest decrease since a 3.0% fall in January 1994.
The April decline follows a revised 1.3% gain in March. Commerce
previously estimated an increase of 0.5% in March.
Private sector construction spending declined 1.9% to a $545.7 billion
rate during April, compared with a revised 1.9% increase in March. Within the
private sector, nonresidential spending fell 1.0%, compared with a revised
2.6% advance in March. Spending on residential buildings fell 3.0% during the
month, following a revised unchanged performance in March.
April public sector construction spending dropped 4.2% to a $151.7
billion rate after declining a revised 0.8% in March.
Economic indicators have shown some recent moderation in the housing
sector, which has benefited this year from low interest rates and the strong
stock market. Housing starts fell 10.1% in April, Commerce said last month,
and analysts expect a slight cooling in the construction sector to contribute
to a slowdown in GDP growth. Still, construction spending is up 8.0% from
April 1998 through April 1999.
In chained 1992 dollars, construction spending declined 2.7% in April
to a seasonally adjusted $559.8 billion annual rate.
A third report indicates the U.S. economic expansion, now in its ninth
year, should continue into early 2000 to become the longest ever, despite a
slight slowdown in leading indicators.
The Conference Board's composite index of leading indicators fell 0.1%
in April to 107.1, its first drop in almost a year, according to preliminary
estimates. The leading index for March was also revised to show no increase.
"This looks like only a temporary pause, although last week's drop in
the stock market adds some complications," said Michael Boldin, director of
business cycle research at the Conference Board.
Most leading indicators, including the stock market, show increases
this year and "this expansion should continue and become the longest ever in
2000," according to Boldin.
Six of the 10 indicators that make up the leading index fell in April.
The most significant decreases were vendor performance, average weekly initial
claims for state unemployment insurance and building permits.
The Conference Board is a nonprofit business research group that
computes the composite indexes from Commerce Department.
Copyright (c) 1999 Dow Jones & Company, Inc.
All Rights Reserved.
06/01 5:25p CDT>>
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