Construction Spending Flat-Lined in May

Construction spending in the U.S. was essentially flat in May although there were gains from one year earlier.  A small gain in spending by the public sector was partially offset by a loss in private spending.  The U.S. Census Bureau estimated total construction spending during the month at a seasonally adjusted annual rate of $956.1 billion, up 0.1 percent from the April estimate of $955.1 billion and 6.6 percent higher than spending in May 2013 which was at a rate of $896.6 billion.  Residential spending totaled $359.9 billion, a decrease of 1.4 percent from April's $365.2 billion but 7.0 percent higher than the $336.3 billion spending rate in May 2013.

On a non-seasonally adjusted basis overall spending in May was $81.4 billion compared to $78.4 billion in April and 76.9 billion in May 2013.  Non-seasonally adjusted spending on residential construction was $31.3 billion compared to $29.6 billion and $29.5 billion for the two earlier periods.  Year-to-date residential spending this year is $135.7 billion compared to $122.6 billion in 2013.

Private spending was at a seasonally adjusted annual rate of $682.8 billion.  This was 0.3 percent below the pace in April of $684.6 billion but a significant 9.0 percent above the seasonally adjusted pace of $626.5 billion one year earlier.  On a non-seasonally adjusted basis total private spending was $58.1 billion in May compared to $56.6 billion in April, and $53.9 billion a year earlier.  Year-to-date spending in 2014 is $262.9 billion against $235.1 billion in 2013, an increase of 11.9 percent

Residential construction was at a seasonally adjusted rate of $354.8 billion, 1.5 percent below the figure for April, $360.1 billion, and 7.5 percent above the May 2013 pace of $330.1 billion.   Non-seasonally adjusted private residential spending in May was $30.9 billion against $29.2 billion in April and $28.9 billion in May 2013.  Year-to-date residential expenditures are $133.7 billion, 11.2 percent higher than the $120.2 billion spent by the end of May 2013.

Total public expenditures for construction in May were at a rate of $273.3 billion, up 1.0 percent from April's $270.5 billion and 1.2 percent above May 2013's rate of $270.1 billion.  Residential expenditures in May were at an annual rate of $5.2 billion compared to $5.1 billion in April (+1.0) and $6.3 billion in May 2013 (-17.9 percent).