According to a July 3 report from the U.S. Census Bureau, construction spending during May was estimated at a seasonally adjusted annual rate of more than $1.92 trillion, 0.9% above the revised April estimate of about $1.90 trillion. The May figure is 2.4% above the May 2022 estimate of $1.88 trillion.

During the first five months of 2023, construction spending amounted to $740.8 billion, 2.9% above the $719.6 billion for the same period in 2022, the bureau said. Spending on private construction was at a seasonally adjusted annual rate of $1.51 trillion, 1.1% above the revised April estimate of approximately $1.49 trillion.

Residential construction was at a seasonally adjusted annual rate of $857.4 billion in May, 2.2 % above the revised April estimate of $839.4 billion. Nonresidential construction was at a seasonally adjusted annual rate of $655.8 billion in May, 0.3% below the revised April estimate of $657.8 billion.

“Nonresidential construction spending declined in May, ending a streak of 11 consecutive monthly increases,” said Anirban Basu, Chief Economist for Associated Builders and Contractors. “While spending is up more than 17% over that span, manufacturing-related construction has accounted for the majority of that increase. Excluding the manufacturing segment, nonresidential construction spending is barely outpacing inflation, up just 6% over the past year.

In May, the estimated seasonally adjusted annual rate of public construction spending was $412.4 billion, 0.1 percent% above the revised April estimate of $411.8 billion. Educational construction was at a seasonally adjusted annual rate of $87.7 billion, virtually unchanged from the revised April estimate of $87.7 billion. Highway construction was at a seasonally adjusted annual rate of $124.6 billion, 0.4% below the revised April estimate of $125.1 billion.