Construction Spending Increased in May

Construction spending increased 0.8 percent in May to a seasonally adjusted annual rate (SAAR) of $1,035.8 billion. April spending was revised up from $1,006.1 billion to $1,027.0 billion. Construction spending during the first five months of 2015 amounted to $382.1 billion, 5.9 percent higher than in the first 5 months of 2014.

Total private construction rose to $752.4 billion, 0.9 percent higher than the revised April estimate of $745.6 billion. Private residential construction rose to $359.5 billion, 0.3 percent higher than April’s estimate, as construction of multi-family homes increased for the month.

Private non-residential construction rose to $392.8 billion, up 1.5 percent on the month and 12.7 percent from a year ago. Growth in commercial construction declined for the month, slowing by 2 percent, while manufacturing construction grew 6.2 percent.

Public construction spending grew 0.7 percent to $283.4 billion. Growth for educational construction fell 0.7 percent on the month, while highway spending rose 2.1 percent to an annual rate of $85.1 billion.