by Calculated Risk on 7/01/2024 10:15:00 AM

From the Census Bureau reported that overall construction spending decreased:

Construction spending during May 2024 was estimated at a seasonally adjusted annual rate of $2,139.8 billion, 0.1 percent below the revised April estimate of $2,142.1 billion. The May figure is 6.4 percent above the May 2023 estimate of $2,011.8 billion.
emphasis added

Private spending decreased and public spending increased:

Spending on private construction was at a seasonally adjusted annual rate of $1,652.1 billion, 0.3 percent below the revised April estimate of $1,656.7 billion. ...

In May, the estimated seasonally adjusted annual rate of public construction spending was $487.6 billion, 0.5 percent above the revised April estimate of $485.4 billion.

Click on graph for larger image.

This graph shows private residential and nonresidential construction spending, and public spending, since 1993. Note: nominal dollars, not inflation adjusted.

Residential (red) spending is 6.3% below the recent peak in 2022.

Non-residential (blue) spending is 0.8% below the peak in January 2024.

Public construction spending is at a new high.

The second graph shows the year-over-year change in construction spending.

On a year-over-year basis, private residential construction spending is up 6.5%. Non-residential spending is up 4.1% year-over-year. Public spending is up 9.7% year-over-year.

This was below consensus expectations for 0.3% increase in spending, however, total construction spending for the previous two months was revised up. 

This is probably just the start of weakness for private non-residential construction.