by Calculated Risk on 7/01/2021 10:35:00 AM
From the Census Bureau reported that overall construction spending decreased:
Construction spending during May 2021 was estimated at a seasonally adjusted annual rate of $1,545.3 billion, 0.3 percent below the revised April estimate of $1,549.5 billion. The May figure is 7.5 percent above the May 2020 estimate of $1,437.7 billion.
Private spending increased and public spending decreased:
Spending on private construction was at a seasonally adjusted annual rate of $1,203.3 billion, 0.3 percent below the revised April estimate of $1,206.8 billion. …
In May, the estimated seasonally adjusted annual rate of public construction spending was $342.0 billion, 0.2 percent below the revised April estimate of $342.7 billion.
This graph shows private residential and nonresidential construction spending, and public spending, since 1993. Note: nominal dollars, not inflation adjusted.
Residential spending is 11% above the bubble peak (in nominal terms – not adjusted for inflation).
Non-residential spending is 9% above the bubble era peak in January 2008 (nominal dollars), but has been weak recently.
Public construction spending is 5% above the previous peak in March 2009, and 30% above the austerity low in February 2014, but weak recently.
On a year-over-year basis, private residential construction spending is up 28.7%. Non-residential spending is down 5.8% year-over-year. Public spending is down 8.7% year-over-year.
Construction was considered an essential service in most areas and did not decline sharply like many other sectors, but some sectors of non-residential have been under pressure. For example, lodging is down 23.2% YoY, multi-retail down 18.0% YoY, and office down 8.3% YoY.