Construction spending continued to inch up ever so slightly in May to a seasonally adjusted annual rate of $874.9 billion, up 0.5% from April’s revised estimate of $870.3 billion, according to data from the U.S. Census Bureau.
Furthermore, May’s spending is 5.4% above the May 2012 estimate of $830.4 billion.
Spending on private construction was nearly unchanged from the month before at $605.4 billion.
Residential construction was at a seasonally adjusted annual rate of $322.3 billion in May, up 1.2% from the revised April estimate of $318.5 billion.
Additionally, nonresidential construction was at a seasonally adjusted rate of $283.1 billion in May, down 1.4% from the revised April estimate of $287.1 billion.
In May, the estimated seasonally adjusted annual rate of public construction spending was $269.5 billion, up 1.8% from the revised April estimate of $264.7 billion.
Analysts at Econoday noted, “The construction sector is edging upward although component strength has been revolving. The one somewhat consistent positive has been multifamily housing. While residential investment has been a plus for economic growth, it still is coming off a low base from the past recession.”