Construction Spending Held Steady in May at $1.23 Trillion

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Construction Spending Held Steady in May at $1.23 Trillion

Washington, DC, July 5, 2017-Construction spending in May totaled $1.230 trillion at a seasonally adjusted annual rate, unchanged from the upwardly revised April total, according to an analysis of new government data by the Associated General Contractors of America.

The year-to-date increase of 6.1% for January through May 2017, compared with the same months of 2016, shows overall demand for construction remains positive but that the recent flattening of investment coincides with more frequent reports that contractors and home builders are stretching out completion times because they cannot find enough qualified workers.

Private nonresidential spending slipped 0.7% for the month but grew 5.3% year-to-date. The largest private nonresidential segment in May was power construction (including oil and gas field and pipeline projects), which edged up 0.3% for the month and 3.4% year-to-date. The next-largest segment, commercial (retail, warehouse and farm) construction, decreased 1.0% in May but climbed 15.2% year-to-date. Manufacturing construction declined 1.7% for the month and 7.8% year-to-date. Private office construction increased by 0.8% for the month and 16.9% year-to-date.

Private residential construction spending slipped by 0.6% between April and May 2017 but gained 12.4% year-to-date. Spending on multifamily residential construction dropped 3.3% for the month and was up 6.2% year-to-date, while single-family inched down 0.3% from April to May and was up 7.3% year-to-date.

Public construction spending grew 2.1% from the prior month but declined by 3.5% for the first five months of 2017 combined. The biggest public segment-highway and street construction-dipped 0.9% for the month and 1.3% year-to-date. Among other major public infrastructure categories, spending on transportation facilities such as transit and airport construction inched down 0.2% year-to-date; spending on sewage and waste disposal plummeted 21.5%; and spending on water supply fell 11.0%.


Related Topics:Associated General Contractors of America