Construction spending falls 0.8% in May

shutterstock_20984158With declines in nonresidential spending and a flat month for residential, total U.S. construction spending fell 0.8 percent in May, according to preliminary data from the Commerce Department.

Spending is at a seasonally adjusted annual rate of $1.143 trillion. Despite two consecutive months of monthly declines, spending remains 2.8 percent above the May 2015 rate.

Total and private residential spending figures were flat during May at $458 billion and $452 billion, respectively. Single-family residential spending fell 1.3 percent to $239 billion while multi-family spending rose 1.8 percent to $61 billion.

Total nonresidential spending also fell, down 1.3 percent to $685 billion. Nonresidential remains up 1.2 percent year over year. Top percentage declines in nonresidential were religious, down 10.4 percent to $4 billion; educational, down 5.3 percent to $84 billion and sewage and waste disposal, down 5.2 percent to $23 billion.

Top nonresidential percentage gains were conservation and development, up 7.7 percent to $8 billion; communication, up 1.8 percent to $19 billion and lodging, up 1.6 percent to $26 billion.

Total spending from the private sector was down 0.3 percent to $859 billion while government spending fell 2.3 percent to $283 billion.