May New Construction Spending Sharply Better Than Expected

constructionThe U.S. Census Bureau reported this morning that construction spending in May rose by 0.5% to an estimated seasonally adjusted annual rate of $874.9 billion from an upwardly revised estimate of $870.3 billion in April. Compared with May 2012, spending is up 5.4%. For all of 2012, construction spending rose 9.9% year-over-year compared with 2011.

Most important here is the upward revision of $9.5 billion to the April estimate. In March, construction spending totaled $857.7 billion.

The consensus estimate by economists surveyed by Bloomberg News called for a rise of 0.6% in construction spending for May. Based on the Census Bureau's original estimate for April, May spending actually rose 1.6%, nearly three times better than the consensus estimate.

Spending on private residential construction rose 1.2% to $322.3 billion, compared with the revised April total of $318.5 billion. Private nonresidential construction rose 1.4% month-over-month, and total private construction spending was essentially flat to a revised April total of $605.4 billion.

In the private sector, single family residential construction is 33.2% higher than it was a year ago, and multifamily construction is up 51.7% from May 2012. Private commercial construction is up 0.2% year-over-year, and down 2.5% from April.

In the public sector, seasonally adjusted total spending is down 4.7% year-over-year, continuing a slide begun in September 2012. Spending on educational facilities fell 0.4% month-over-month and 10.5% from May 2012 spending. Public residential construction rose 1.6% month-over-month and is 4.1% higher year-over-year.

Construction spending in the public sector remains on the decline. In the private sector, the volatile multifamily construction spending continues to show grow of around 2% per month.

Filed under: Housing
Read Full Story


NASDAQ 7,344.24 -137.74 -1.84%
S&P 500 2,712.92 -39.09 -1.42%
DJIA 24,610.91 -335.60 -1.35%
NIKKEI 225 21,368.79 -112.11 -0.52%
HANG SENG 31,344.20 -169.56 -0.54%
DAX 12,217.02 -172.56 -1.39%
USD (per EUR) 1.23 0.00 0.01%
USD (per CHF) 0.95 0.00 0.12%
JPY (per USD) 106.33 0.34 0.32%
GBP (per USD) 1.40 0.00 0.01%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.