The US construction sector witnessed a slight contraction in May 2024, with spending falling marginally by 0.1% to a seasonally adjusted annual rate of $2.139trn from April’s revised estimates.
According to the US Commerce Department’s Census Bureau data, it was the first month-over-month decrease since October 2022.
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Despite this dip, the industry’s year-on-year (YoY) performance showed a robust increase of 6.4% compared to May 2023.
In the first five months of 2024, the construction industry’s cumulative spending reached $836.3bn, marking an 8.8% rise from the same period in the previous year.
Private construction spending, which encompasses both residential and non-residential investments, was reported at an annual rate of $1.652trn in May.
This figure represents a decrease of 0.3% from April’s revised figures.
Within this segment, residential construction spending also saw a decrease of 0.2%, reaching an annual rate of $918.2bn.
Non-residential private construction spending, which includes commercial and industrial facilities among others, was not immune to the downward trend, dipping by 0.3% to an annual rate of $733.9bn.
Public construction spending in May painted a more positive picture, with a 0.5% increase from April, reaching an annual rate of $487.6bn.
Educational construction spending contributed to this uptick, rising by 0.6% to $102.1bn.
However, highway construction spending did not follow suit, experiencing a 0.5% decrease to an annual rate of $147.6bn.
