Construction Spending Dips 0.1% In May, 1st Decline In 8 Months
Summary
According to data released Friday by the Commerce Department, construction spending was estimated at a seasonally adjusted annual rate of $1.78 trillion, down from the revised April estimate of $1.783 trillion. Private construction spending remained unchanged in May after increasing 1.1% in April, but was 19% higher than in May 2021. Private spending on constructing single-family homes in May, however, was 15.1% higher than a year earlier, while private spending on construction of multi-family homes fell 3.6% from a year earlier. Public investment in residential construction fell 0.7% in May from April, and was down 2.7% from a year earlier. The National Association of Home Builders reports that prices for construction materials have increased 20% in the past year, during a period of intense demand and insufficient supply.