For the second month in a row, May construction spending was down from the previous month. All areas of building saw a decline in spending.
Overall construction spending declined .8% in May, following a 2% decline in April. April’s decline was the biggest month over month setback in five years. Despite these setbacks, construction is still expected to be a significant contributor to the overall growth of the economy in 2016.
Though spending was down in all sectors, the decline was not major for every category. Construction spending in the private construction fell .03% from April. Residential construction spending for the month of May totaled $451.9 billion, which was nearly the same as April’s residential construction spending. Non-residential spending fell .07% from April. Overall total private construction spending was $859.3 billion.
Public construction spending was $284 billion which was a 2.3% decline from April. Education and transportation spending spending saw a significant decline with a 5.4% drop and a 4.6% drop respectively, from the previous month. More optimistically, public construction in the office sector saw a 4.2% increase from April.
Though month over month construction spending is down, 2016 May construction spending is 2.8% above May 2015 construction spending.
For more information, visit the US Census Bureau website.