Total Construction
Construction spending during May 2024 was estimated at a seasonally adjusted annual rate of $2,139.8 billion, 0.1 percent (±1.0 percent)* below the revised April estimate of $2,142.1 billion. The May figure is 6.4 percent (±1.6 percent) above the May 2023 estimate of $2,011.8 billion. During the first five months of this year, construction spending amounted to $836.3 billion, 8.8 percent (±1.2 percent) above the $768.6 billion for the same period in 2023.
Private Construction
Spending on private construction was at a seasonally adjusted annual rate of $1,652.1 billion, 0.3 percent (±0.7 percent)* below the revised April estimate of $1,656.7 billion. Residential construction was at a seasonally adjusted annual rate of $918.2 billion in May, 0.2 percent (±1.3 percent)* below the revised April estimate of $920.3 billion. Nonresidential construction was at a seasonally adjusted annual rate of $733.9 billion in May, 0.3 percent (±0.7 percent)* below the revised April estimate of $736.5 billion.
Public Construction
In May, the estimated seasonally adjusted annual rate of public construction spending was $487.6 billion, 0.5 percent (±1.8 percent)* above the revised April estimate of $485.4 billion. Educational construction was at a seasonally adjusted annual rate of $102.1 billion, 0.6 percent (±2.5 percent)* above the revised April estimate of $101.5 billion. Highway construction was at a seasonally adjusted annual rate of $147.6 billion, 0.5 percent (±5.3 percent)* below the revised April estimate of $148.3 billion.
Comment
Construction spending fell month to month by 0.1%, the first month to month drop since September of 2022.
Construction of manufacturing facilities continues to rise. Although it has moderated since the peak year over year change of 73% in April of 2023, it was still up over 20% from a year ago. Some of this is being driven by the CHIPs Act but only $32.8 billion of that money has been allocated to date. That represents only 14% of the annualized rate of construction spending. Most of this appears to be reshoring activity or Foreign Direct Investment. Some of this spending could also be from the Inflation Reduction Act but we don’t yet have a good estimate of the spend to date.
