U.S. Construction Spending Rose By 0.9% M/M In May

Total U.S. construction spending rose by 0.9% m/m in May, which was much stronger than the 0.2% expected by consensus and after April was revised up to a 0.6% pace (was up 0.3% before). Total construction spending is up 7.0% from last May. Strength was in private construction, up by 1.6% over April. In contrast, total public spending was down 0.4%. On a year-over-year basis, total private construction is up 13.1%, while public construction is down by 3.9%. Total residential construction spending rose by 2.9% m/m and is up 6.2% over last May. Here, the 3.0% m/m jump in private residential construction spending was only partially offset by a 0.8% m/m drop in public residential construction spending. Nonresidential construction was flat, though follows a revised 0.1% gain in April (was down 0.7%). The flat reading was because a 0.4% drop in public nonresidential construction spending offset a 0.4% gain in private nonresidential construction spending. While the report was much better than expected, it will likely be overlooked by the disappointing ISM manufacturing report.

The posts on this blog are opinions, not advice.
Please read our disclaimers for Ratings Services, Indices, Equity Research, Securities Evaluations and Risk Solutions.

Post a Comment

Thank you for submitting a comment. We ask you to use the comment guidelines to promote thoughtful and productive discussions. Your comment will be approved before it will be posted. Thank you for your patience.

Required fields are marked *


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

  • Categories

  • Recent Comments

  • Tags