EmailConstruction spending jumped 0.9% in May after increasing an upwardly revised 0.6% in April. The Briefing.com consensus expected construction spending to increase 0.2%. The pickup in construction was driven primarily by growth in the private residential construction sector.
Private residential construction increased 3.0% in May, up from 1.7% growth in April. Spending on structures increased 2.5% while spending on home improvement projects rose 3.6%. Private nonresidential construction expenditures increased 0.4% as a 2.8% increase in manufacturing spending offset declines in religious (-8.4%), educational (-3.2%), and amusement/recreation (-1.5%). Office and commercial spending increased 0.3% and 0.1% respectively. Overall private construction spending increased a healthy 1.6%. Public construction fell 0.4% with large declines coming from office (-4.9%), educational (-3.0%), and water supply (-2.0%).
