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Thursday, July 1, 2010

Construction Spending Falls 0.2%

In May, new construction spending fell 0.2% following a downwardly revised increase of 2.3% in April (previously a 2.7% rise). This volatility was primarily driven by the effect of the homebuyer tax credit which expired at the end of April. Housing activity surged in April, with residential construction jumping 5.0%. Following this jump, spending came down somewhat, falling 0.4%. However, private non-residential construction spending also fell 0.6% following a 0.8% rise in April.

Public sector construction was the only area of growth in May, rising 0.4%. However, from a year prior, it was still down 2.9%.
On a year ago basis, total construction spending was 8.0% lower. Private residential spending was up 11.2%, but private non-residential spending was down 24.8%.

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