Residential construction spending decreased 0.5% from April to May to a seasonally adjusted annual rate of $901 million, according to the U.S. Census Bureau. Compared with May 2024, residential construction spending decreased 6.5%.
Industry-wide construction spending fell 0.3% from April to May to a seasonally adjusted annual rate of $2.138 trillion. Compared with May 2024, construction spending decreased 3.5%.
“Given the many headwinds at play, including high interest rates, tight lending standards, elevated uncertainty and the effects of immigration and trade policy on labor and materials costs, spending may struggle to rebound during the second half of the year,” Associated Builders and Contractors Chief Economist Anirban Basu said in a statement.
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