Construction Spending During May Up Slightly Over April and 7% Over May 2011

The Department of Commerce announced that construction spending during May was estimated at a seasonally adjusted annual rate of $830 billion, 0.9% above the revised April estimate of $822.5 billion, according to the Department of Commerce. The May figure is 7% above the May 2011 estimate of $775.8 billion. During the first five months of this year, construction spending hit $310.5 billion, 9.4 percent above the $283.8 billion for the same period in 2011.

Private construction. Spending on private construction was at a seasonally adjusted annual rate of $560.4 billion, 1.6% above the revised April estimate of $551.8 billion. Residential construction was at a seasonally adjusted annual rate of $261.3 billion in May, 3% above the revised April estimate of $253.8 billion. A 6.3%-increase in new multi-family construction during May to $20.5 billion — up 50.3% over May 2011 — was the largest percent increase during the month for any individual category in the private construction arena. Nonresidential construction was at a seasonally adjusted annual rate of $299.1 billion in May, 0.4% above the revised April estimate of $298 billion.

Public construction. In May, the estimated seasonally-adjusted annual rate of public construction spending was $269.6 billion, 0.4% below the revised April estimate of $270.7 billion. Educational construction was at a seasonally adjusted annual rate of $65.0 billion, 3% below the revised April estimate of $67 billion. The $500 million increase in health care construction and $700 million increase in public utility construction helped boost public construction spending in May.