Construction spending in May was an estimated seasonally adjusted annual rate of $1.14 trillion, 0.8% below the revised April estimate, according to a report from the U.S. Census Bureau of the Department of Commerce.
From April to May, private construction spending declined 0.3% to a seasonally adjusted annual rate of $859.3 billion and public construction spending dropped 2.3% to a rate of $284.0 billion. Religious construction was hit hardest over the last month, with spending dropping more than 10 percent. Sewage and waste disposal, transportation, and educational sectors also experienced dips in spending.
Even with the reductions, construction spending is stronger than it was a year ago. The $1.14 trillion spending rate is 2.8 percent higher than the May 2015 estimate of $1.11 trillion. For the first five months of 2016, $438.5 billion has been spent on construction, an 8.2 percent rise above the 405.4 billion spend during the from January to May last year.
Related Stories
Market Data | Apr 8, 2020
6 must reads for the AEC industry today: April 8, 2020
Stantec discusses how hospitals can adapt buildings to address worst-case scenarios and FXCollaborative Architects tells us why cities will survive the pandemic.
Market Data | Apr 7, 2020
7 must reads for the AEC industry today: April 7, 2020
Leo A Daly's Hotel2Hospital prototype takes shape, while the number of delayed projects reaches 2,550 in the U.S. amid coronavirus pandemic.
Market Data | Apr 3, 2020
COVID-19 cuts nonresidential construction employment in March
The construction unemployment rate was 6.9% in March, up 1.7 percentage points from the same time one year ago.
Market Data | Apr 1, 2020
February’s construction spending decline indicates what’s to come
Private nonresidential spending declined 2% on a monthly basis and is down 0.7% compared to February 2019.
Market Data | Mar 26, 2020
Architects taking action to support COVID-19 response
New AIA task force will offer insights for adapting buildings into healthcare facilities.
Market Data | Mar 26, 2020
Senate coronavirus relief bill's tax and lending provisions will help construction firms, but industry needs additional measures
Construction officials say measure will help firms cope with immediate cash flow crunch, but industry needs compensation for losses.
Market Data | Mar 25, 2020
Engineering and construction materials prices fall for first time in 40 months on coronavirus impacts, IHS Markit says
Survey respondents reported falling prices for five out of the 12 components within the materials and equipment sub-index.
Market Data | Mar 23, 2020
Coronavirus will reshape UAE construction
The impact of the virus has been felt in the UAE, where precautionary measures have been implemented to combat the spread of the virus through social distancing.
Coronavirus | Mar 20, 2020
Pandemic has halted or delayed projects for 28% of contractors
Coronavirus-caused slowdown contrasts with January figures showing a majority of metro areas added construction jobs; Officials note New infrastructure funding and paid family leave fixes are needed.
