Sluggish Commercial Construction Sinks May 2009 Building, Says Census Bureau

The U.S. Census Bureau of the Department of Commerce said construction spending during May 2009 was estimated at a seasonally adjusted annual rate of $964 billion, 0.9 percent below the revised April estimate of $972.5 billion. The May figure is 11.6 percent below the May 2008 estimate of $1,090.7 billion. During the first five months of this year, construction spending amounted to $368.8 billion, 11.7 percent below the $417.5 billion for the same period in 2008.

Private construction. Spending on private construction was at a seasonally adjusted annual rate of $649.2 billion, one percent below the revised April estimate of $655.6 billion. Residential construction was at a seasonally adjusted annual rate of $240.2 billion in May, 3.4 percent below the revised April estimate of $248.8 billion. Nonresidential construction was at a seasonally adjusted annual rate of $409 billion in May, 0.5 percent above the revised April estimate of $406.9 billion.

The segments of the private construction market with the largest year-to-year decreases were commercial (-28.4%); residential (-33.3%); communication (28.7%); lodging (-17.8%); and office (-12.1%).

Public construction. In May, the estimated seasonally adjusted annual rate of public construction spending was $314.9 billion, 0.6 percent below the revised April estimate of $316.9 billion. Educational construction was at a seasonally adjusted annual rate of $91.3 billion, 0.5 percent above the revised April estimate of $90.8 billion. Highway construction was at a seasonally adjusted annual rate of $78.5 billion, 1.3 percent below the revised April estimate of $79.5 billion.