May 2019 Construction Spending

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Construction spending during May 2019 was estimated at a seasonally adjusted annual rate (SAAR) of $1,293.9 billion, 0.8% (±1.2%)* below the revised April estimate of $1,304.0 billion (originally $1,298.5 billion); consensus expectations were for +0.1%. The May figure is 2.3% (±1.5%) below the May 2018 SAAR of $1,324.3 billion; the not-seasonally adjusted YoY change (shown in the table below) was -1.5%.

During the first five months of this year, construction spending amounted to $498.8 billion, 0.3% (±1.3%)* below the $500.3 billion for the same period in 2018.

* 90% confidence interval includes zero. The U.S. Census Bureau does not have sufficient statistical evidence to conclude that the actual change is different from zero. 

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Private Construction

Spending on private construction was at a SAAR of $953.2 billion, 0.7% (±0.7%)* below the revised April estimate of $960.3 billion (originally $954.0 billion).
- Residential: $498.9 billion, 0.6% (±1.3%)* below the revised April estimate of $501.7 billion.
- Nonresidential: $454.3 billion, 0.9% (±0.7%) below the revised April estimate of $458.5 billion.

Public Construction

Public construction spending was $340.6 billion, 0.9% (±2.1%)* below the revised April estimate of $343.7 billion (originally $344.6 billion).
- Educational: $79.3 billion, nearly the same as (±2.6%)* the revised April estimate of $79.3 billion.
- Highway: $111.6 billion, 3.2% (±6.1%)* below the revised April estimate of $115.4 billion. 

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Click here for a discussion of May’s new residential permits, starts and completions. Click here for a discussion of new and existing home sales, inventories and prices.

The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.