Construction spending declined 0.3% overall in May to $1.55 trillion, the U.S. Census Bureau reported. Construction spending is up 7.5% compared with May 2020.
The month-over-month decline was driven by continued drops in the non-residential construction sector, where construction spending declined 0.7% month-over-month and 7.1% year-over-year. The Associated General Contractors of America cited supply chain disruptions, rising materials prices and labor shortages for the spending declines.
The residential construction sector continued to see growth, with spending increasing 0.2% month-over-month and an increase of 28.2% year-over-year.
Total private construction spending dipped 0.3% month-over-month but increased 13.2% compared with May 2020. Total public construction spending dropped 0.2% month-over-month and fell 8.7% year-over-year.
The full Census Bureau report can be found here.
