According to the U.S. Census Bureau, construction spending during May 2024 was estimated at a seasonally adjusted annual rate of $2,139.8 billion, 0.1% (±1.0%) below the revised April estimate of $2,142.1 billion. The May figure is 6.4% (±1.6%) above the May 2023 estimate of $2,011.8 billion. During the first five months of this year, construction spending amounted to $836.3 billion, 8.8% (±1.2%) above the $768.6 billion for the same period in 2023.
In May, the estimated seasonally adjusted annual rate of public construction spending was $487.6 billion, 0.5% (±1.8%) above the revised April estimate of $485.4 billion.
- Highway construction was at a seasonally adjusted annual rate of $147.6 billion, 0.5% (±5.3%) below the revised April estimate of $148.3 billion.
- Educational construction was at a seasonally adjusted annual rate of $102.1 billion, 0.6% (±2.5%) above the revised April estimate of $101.5 billion.
Spending on private construction was at a seasonally adjusted annual rate of $1,652.1 billion, 0.3% (±0.7%) below the revised April estimate of $1,656.7 billion.
- Residential construction was at a seasonally adjusted annual rate of $918.2 billion in May, 0.2% (±1.3%) below the revised April estimate of $920.3 billion.
- Nonresidential construction was at a seasonally adjusted annual rate of $733.9 billion in May, 0.3% (±0.7%) below the revised April estimate of $736.5 billion.
“The Census Bureau today responded to requests by the Associated General Contractors of America and others to show data centers separately from the overall private office category,” said Ken Simonson, the association’s chief economist. “While the overall category slipped just 1.7% in the latest 12 months, that total hides a 69% jump in data center construction, which nearly offset an 18.5% plunge in spending on actual private offices.”
Association officials said new regulatory obstacles are keeping public-sector spending on construction from being even higher. They urged federal officials to look at ways to streamline the Build America review and waiver process to accelerate reviews for federally funded projects. They also continued to call for greater federal investments in workforce development to expose more people to construction career opportunities.
“Nonresidential construction spending has fallen for two consecutive months yet remains just 0.2% below the all-time high achieved in March 2024,” said Associated Builders and Contractors (ABC) Chief Economist Anirban Basu. “Much of that progress is attributable to ongoing infrastructure investments, which spurred a sizable 0.4% increase in publicly funded nonresidential spending in May.
“Private nonresidential spending has lagged and, after falling 0.3% in May, is up just 4.1% year over year,” said Basu. “That weakness can be tied to interest rate-sensitive segments like office and commercial, both of which have also been hampered by altered demand dynamics in the wake of the pandemic. Despite this recent private sector moderation, contractors remain confident about the next few quarters, with a majority expecting their sales to increase over the next six months, according to ABC’s Construction Confidence Index.”