EmailTotal construction spending tumbled 0.6% in May. The Briefing.com consensus expected construction spending to be flat. To make matters worse, spending in April was heavily revised down to also show a 0.6% decline (from +0.4%).
Private construction declined 0.4% in May after increasing 0.4% in April.
Private residential construction fell 2.1% in May after increasing 2.9% in April. Home improvement projects, which accounted for the bulk of the April increase in residential spending, fell 2.9% even though sales at building materials and supply dealers were up 1.2% in May. Structures spending was down 0.5% during the month.
Private nonresidential construction increased 1.2% in May after falling a downwardly revised -1.8% (from +0.5%) in April. Gains in lodging (1.5%), office (1.3%) and power (4.4%) offset declines in communication (-2.9%), educational (-4.3%), and commercial (-0.4%).
Budgetary problems at the state and local level continue to be instrumental in public construction spending declines. Public spending fell 0.8% in May and has been down every month since September 2010.
