Monday, July 01, 2019

Construction Spending Declined in May

by Calculated Risk on 7/01/2019 11:23:00 AM

From the Census Bureau reported that overall construction spending declined in May:

Construction spending during May 2019 was estimated at a seasonally adjusted annual rate of $1,293.9 billion, 0.8 percent below the revised April estimate of $1,304.0 billion. The May figure is 2.3 percent below the May 2018 estimate of $1,324.3 billion.
Both private and public spending decreased:
Spending on private construction was at a seasonally adjusted annual rate of $953.2 billion, 0.7 percent below the revised April estimate of $960.3 billion. ...

In May, the estimated seasonally adjusted annual rate of public construction spending was $340.6 billion, 0.9 percent below the revised April estimate of $343.7 billion.
emphasis added
Construction Spending Click on graph for larger image.

This graph shows private residential and nonresidential construction spending, and public spending, since 1993. Note: nominal dollars, not inflation adjusted.

Private residential spending had been increasing - but turned down in the 2nd half of 2018 - and is now 26% below the bubble peak.

Non-residential spending is 10% above the previous peak in January 2008 (nominal dollars).

Public construction spending is 5% above the previous peak in March 2009, and 30% above the austerity low in February 2014.

Year-over-year Construction SpendingThe second graph shows the year-over-year change in construction spending.

On a year-over-year basis, private residential construction spending is down 11%. Non-residential spending is down slightly year-over-year. Public spending is up 11% year-over-year.

This was below consensus expectations, however spending for April was revised up slightly. Another weak construction spending report.