After a disappointing first quarter, construction activity continued to sputter in April. Industry data paint a mixed picture of gains and losses across sectors. It may be, however, that the worst is behind for 2014. Construction employment is steadily increasing, and analysts point to leading indicators that suggest business is poised to improve in the months ahead.

Nonresidential construction appeared to be gaining momentum in March. McGraw-Hill Construction reported an overall 7 percent increase in new construction starts in March, largely due to a 24 percent increase in nonresidential activity.

Much of that gain eroded in April, though. According to Reed Construction, the value of new construction starts dropped 4.9 percent last month. Industrial starts, which were a bright light in March, plummeted 75 percent in April. Starts in the commercial and lodging sectors also declined. Institutional starts rose 24 percent, buoyed by new educational and healthcare projects. Private office and government starts experienced modest increases.

"April starts data once again point to the negative impact adverse weather is having on construction activity," stated Bernard Markstein, U.S. chief economist at Reed Construction Data. Nonetheless, he said, "Reed is comfortable with our forecast of nonresidential construction starts improving significantly in coming months and eventually exceeding last year's starts numbers."

Extreme winter weather and mixed economic signals have stymied hopes for improvement in residential construction, as well. The National Association of Home Builders (NAHB) Builder Confidence Index fell one point in May, expressing builders' realignment with minimal gains in activity during the first quarter of 2014.

Yet homebuilders have faith that business will pick up in the coming months. Their optimism was reaffirmed by the latest Census Bureau data, which reports a 13.2 percent increase in housing starts in April over March, and a 26.4 percent higher rate over the same month last year. Much of that gain came in the multifamily category; however, issuance of new building permits for single-family residences was up 8 percent.

Other leading indicators also point to a resurgence in activity in the months ahead. Following declines in February and March, the Dodge Momentum Index, which measures the monthly activity in first reports of nonresidential building projects in planning, advanced 8.4 percent in April.

Of the two sectors tracked by the Index, commercial building was the stronger, jumping 12.1 percent, due to plans for new office and hotel projects. Institutional building showed a more modest 3.9 percent increase, with healthcare continuing to improve but education slowing somewhat.

That's good news for architects, who also have experienced a drop in demand for their services. The American Institute of Architects reports that its Architecture Billings Index (ABI) dropped for a second month in a row, from 49.6 in March to 48.8 in April.

The ABI's measures of future business, however, both increased. The new inquiries index rose from 57.9 in March to 59.1 last month, and the new contracts reading was 54.6, up from 48.2 in March. "There is a pervading sense of optimism that business conditions are poised to improve as the year moves on," said AIA Chief Economist Kermit Baker.

More positive news comes in the form of industry employment figures. According to the U.S. Bureau of Labor Statistics, employment in construction grew by 32,000 in April. Construction has added 189,000 jobs over the past year, with almost three-fourths of the gain occurring in the past six months. Unemployment in the industry, although still high, has fallen from 12.3 percent in January to 9.4 percent in April.

Analysis of labor force data conducted by CareerBuilder.com and Economic Modeling Specialists International, released earlier this month, shows recent steady recovery in construction jobs continuing throughout the remainder of 2014. Growth is expected to be higher in the nonresidential sector, particularly industrial, and in home remodeling as well.

The report also identifies the top 10 metro areas for construction jobs, with California offering the best opportunities for residential construction, and Austin, Texas, and Rochester, New York, for nonresidential construction.