Construction Spending SURGES 0.9% Beating Expectations

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Expectation: Construction spending is expected to rise 0.2 per cent month-over-month (mum) in May, from 0.3 per cent in April.All eyes are on whether U.S. builders spend more on contraction projects after recent data suggest that the housing market is finally improving.

Headline: Construction spending surged 0.9 per cent mum at a seasonally adjusted annual rate of $830 billion.

Construction spending was up 7 per cent year-over-year.

From the release:

PRIVATE CONSTRUCTION

Spending on private construction was at a seasonally adjusted annual rate of $560.4 billion, 1.6 per cent (±1.6%)* above the revised April estimate of $551.8 billion. Residential construction was at a seasonally adjusted annual rate of $261.3 billion in May, 3.0 per cent (±1.3%) above the revised April estimate of $253.8 billion. Nonresidential construction was at a seasonally adjusted annual rate of $299.1 billion in May, 0.4 per cent (±1.6%)* above the revised April estimate of $298.0 billion.

PUBLIC CONSTRUCTION

In May, the estimated seasonally adjusted annual rate of public construction spending was $269.6 billion, 0.4 per cent (±2.1%)* below the revised April estimate of $270.7 billion. Educational construction was at a seasonally adjusted annual rate of $65.0 billion, 3.0 per cent (±3.8%)* below the revised April estimate of $67.0 billion. Highway construction was at a seasonally adjusted annual rate of $78.0 billion, 0.5 per cent (±6.3%)* below the revised April estimate of $78.4 billion.

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