U.S. Commerce Dept. Reports Slight Dip in May Value of New Construction

The U.S. Department of Commerce said construction spending during May 2016 was estimated at a seasonally adjusted annual rate of $1,143.3 billion, 0.8% below the revised April estimate of $1,152.4 billion. The May figure is 2.8% above the May 2015 estimate of $1,112.2 billion. During the first five months of this year, construction spending amounted to $438.5 billion, 8.2% above the $405.4 billion for the same period in 2015.

Private construction. Spending on private construction was at a seasonally adjusted annual rate of $859.3 billion, 0.3% below the revised April estimate of $861.9 billion. Residential construction was at a seasonally adjusted annual rate of $451.9 billion in May, nearly the same as the revised April estimate of $451.7 billion. Nonresidential construction was at a seasonally adjusted annual rate of $407.4 billion in May, 0.7% below the revised April estimate of $410.1 billion. Multi-family residential construction (+23.9%); Lodging (20.6%); Office (22.5%); and Amusement and Recreation (20.1)%  were the categories showing the biggest year-over-year increases.

Public construction. In May, the estimated seasonally adjusted annual rate of public construction spending was $284 billion, 2.3% below the revised April estimate of $290.5 billion. Educational construction was at a seasonally adjusted annual rate of $66.8 billion, 5.4% below the revised April estimate of $70.6 billion.

The $6.5 billion decline in public construction from the April data accounts for a significant chunk of the overall decline. Within this category, educational construction slid the most, losing $3.8 billion from April’s mark.