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Writer's pictureRealFacts Editorial Team

Construction spending posts bigger-than-expected drop in May 2024


Man working construction

In May, construction spending in the U.S. experienced a slight decline as both companies and the government scaled back on projects due to persistently high interest rates. The Commerce Department reported a 0.1% decrease in construction spending, amounting to $2.1 trillion. This figure was below Wall Street expectations, which had predicted a 0.2% increase.


Construction spending encompasses government and private sector investments in various projects, including housing and infrastructure. Higher construction spending generally indicates elevated economic activity. The government revised April's construction spending figure to a 0.3% increase from an initially reported 0.1% drop.


- Overall Construction Spending: Fell by 0.1% in May.

- Private Residential Construction: Decreased by 0.2%.

- Single-family Construction: Declined by 0.7%.

- Multifamily Construction: Remained unchanged.

- Public Residential Construction: Increased by 2.6%.


Despite the monthly decline, construction spending over the past year has increased by 6.4%.

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