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Construction Spending Continues Upward Movement07-09-15 | News

Construction Spending Continues Upward Movement

All major construction categories recorded solid gains in May, according to reports from the U.S. Census Bureau and Associated General Contractors.

Construction spending in May was marginally higher month-to-month, but more than 8 percent greater on a year-to-year basis, according to U.S. Census Bureau data released July 1.

Spending in May was the highest since October 2008, the Associated General Contractors of America said in a related news item.

"There were solid monthly and year-to-year gains in May for all major construction categories "?u private nonresidential, residential and public," said Ken Simonson, chief economist for the AGC.

Simonson also noted that the year-to-year growth rate is the best since March 2014.

The May seasonally adjusted estimate of $1,035.8 billion is 0.8 percent higher than the $1,027.0 billion recorded in April, the U.S. Census Bureau said. This is 8.2 percent above the May 2014 estimate of $957.6 billion.

During the first five months of this year, construction spending amounted to $382.1 billion. This is 5.9 percent more than the $360.8 billion spent in the first five months of 2014.

Spending in the private sector in May was at a seasonally adjusted $752.4 billion, or 0.9 percent higher than the revised April estimate of $745.6 billion. This is 10.3 percent higher on a year-to-year basis.

A seasonally adjusted $359.5 billion was spent on residential projects in May, or 0.3 percent above the revised April estimate of $358.5 billion. This is 7.8 percent higher than what is on record for May 2014.

In nonresidential construction, $392.8 billion was spent in May. This is 1.5 percent better than the revised April estimate of $387.1 billion, and 7.8 percent better year-to-year.

Public sector spending amounted to $238.4 billion in May, or 0.7 percent better than the April estimate of $281.5 billion. This is 2.8 percent higher than May 2014.