May 2022 Construction Spending

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Construction spending during May 2022 was estimated at a seasonally adjusted annual rate of (SAAR) $1,779.8 billion, 0.1% (±0.8%)* below the revised April estimate of $1,782.5 billion (originally $1,744.8 billion); expectations were for a 0.4% increase. The May figure is 9.7% (±1.3%) above the May 2021 estimate of $1,621.9 billion; the not-seasonally adjusted YoY comparison (shown in the table below) is +10.3%.

During the first five months of this year, construction spending amounted to $686.9 billion, 11.0% (±1.0%) above the $619.0 billion for the same period in 2021.

* 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 $1,436.0 billion, virtually unchanged (±0.7%)* from the revised April estimate of $1,435.9 billion (originally $1,394.7 billion):
- Residential. $938.2 billion, +0.2% (±1.3%)* of which
- Home improvement. $354.9 billion, +0.6% (+36.0% YoY);
- Nonresidential. $497.8 billion, -0.4% (±0.7%)*.

Public Construction

Public construction spending was $343.8 billion, 0.8% (±1.6%)* below the revised April estimate of $346.6 billion (originally $350.1 billion):
- Educational: $78.4 billion, -0.4% (±3.0%)*
- Highway: $98.1 billion, -2.3% (±4.6%)*.

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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.