Construction Spending Increases for Fifth Consecutive Month

The Census Bureau reported construction spending increased in May to a seasonally adjusted annual rate of $1,925 billion, 0.9 percent above the bureau’s revised April estimate.

The report noted the May figure is 2.4 percent above the May 2022 estimate of $1,880 billion.

During the first five months of this year, construction spending totaled $740.8 billion, 2.9 percent above the $719.6 billion for the same period in 2022, the Census Bureau said.

Wells Fargo Economics, Charlotte, said May’s overall increase was driven by a 2.1% pickup in residential spending, the largest month-over-month gain since January 2022 “in a shift from the recent weakness in housing construction.”

Census said spending on private construction was at a seasonally adjusted annual rate of $1,513 billion, 1.1 percent above the revised April estimate of $1,497 billion.

The estimated seasonally adjusted annual rate of public construction spending was $412 billion in May, Census said, 0.1 percent above its revised April estimate of $411 billion.