WASHINGTON, DC-The latest construction spending figures show that activity rebounded strongly in April, with a 2.7% increase from the previous month. That represents $23 billion, to a seasonally adjusted annual rate of $869 billion.

Gains were primarily driven by private residential construction (up 4.4% ) and public construction (up 2.4% ) --  also  private nonresidential increased significantly by 1.7%.

According to the Associated General Contractors of America, the good news that can be distilled from these figures is that the stimulus is beginning to show tangible impact. The bad news is that it is just about the only driver of activity now.

The stimulus helped both residential and non residential construction, Ken Simonson, chief economist for the construction trade association, tells GlobeSt.com. "The impact of the home buyer tax credit seemed to have jumpstarted single family housing construction and it remains to be seen if that will continue now that the tax credit is over."

In the non residential category, he noted, funding first hit highway construction projects. Most of the contracts, though, were not awarded until late last year or early this year. "We will see the benefits continue through 2010."

 That said, there are no other signs of a pickup in activity outside of the stimulus activity, Simonson said.

"I have long been expecting private power construction would be a good category this year. Other than that, though, the developer  financed categories are still very weak."