May 2023 Construction Spending

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Construction spending during May 2023 was estimated at a seasonally adjusted annual rate (SAAR) of $1,925.6 billion, 0.9% (±0.5%) above the revised April estimate of $1,909.0 billion (originally $1,885.0 billion); expectations were for +0.5%. The May figure is 2.4% (±1.2%) above the May 2022 SAAR of $1,880.9 billion; the not-seasonally adjusted YoY comparison (shown in the table below) is also +2.4%.

During the first five months of this year, construction spending amounted to $740.8 billion, 2.9% (±1.0%) above the $719.6 billion for the same period in 2022.

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Private Construction

Spending on private construction was at a SAAR of $1,513.2 billion, 1.1% (±0.3%) above the revised April estimate of $1,497.2 billion (originally $1,500.7 billion):
- Residential. $857.4 billion, +2.2% (±1.3%) of which
- Home improvement. $358.4 billion, +3.4% (-1.8% YoY);
- Nonresidential. $655.8 billion, -0.3% (±0.3%)*.

Public Construction

Public construction spending was $412.4 billion, 0.1% (±1.0%)* above the revised April estimate of $411.8 billion (originally $407.7 billion):
- Educational. $87.7 billion, virtually unchanged (±1.5%)*;
- Highway. $124.6 billion, -0.4% (±2.8%)*.

* 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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Click here for a discussion of May’s new residential permits, starts and completions, and 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.