The Commerce Department reported on Friday that the U.S. construction
spending edged down 0.1 percent m-o-m in May, following an upwardly unrevised 0.8
percent m-o-m increase (from 0.2 percent m-o-m) in April. This marked the first
decrease in construction spending since February 2021 (-1.1 percent m-o-m).
Economists had predicted construction spending to rise 0.4 percent m-o-m
in May.
According to the report, public construction outlays dropped 0.8 percent
m-o-m, due to a 0.8 percent m-o-m fall in nonresidential spending and a 0.7
percent m-o-m decrease in residential spending.
Meanwhile, spending on private construction was flat m-o-m, as a 0.2
percent m-o-m advance in residential spending was offset by a 0.4 percent m-o-m
decline in nonresidential spending.
On a y-o-y basis, construction spending surged 9.7 percent in May.