Construction spending rose 0.1 percent in May, the third consecutive monthly gain. Private residential outlays pulled the headline lower, falling 1.5 percent, while private nonresidential rose 1.1 percent. State and Local Outlays Showed Improvement in Q2
Private nonresidential spending rose 1.1 percent in May with the largest gains in power and communication. Public construction spending rose 1.0 percent in May, with state and local also up on the month. State and local outlays directly feed into the BEA’s calculation for real GDP and recent figures suggest the second quarter is off to a good start. Highway & street, however, could slow due to the expected shortfall in the Highway Trust Fund.
State and Local Outlays Showed Improvement in Q2
Private nonresidential spending rose 1.1 percent in May with the largest gains in power and communication. Public construction spending rose 1.0 percent in May, with state and local also up on the month. State and local outlays directly feed into the BEA’s calculation for real GDP and recent figures suggest the second quarter is off to a good start. Highway & street, however, could slow due to the expected shortfall in the Highway Trust Fund.
