Construction spending in May totaled the highest rate since October 2008
Construction spending in May totaled the highest rate since October 2008.

Construction Spending Jumps in May and June

Construction spending in May totaled $1.036 trillion in the United States at a seasonally  adjusted annual rate, the highest rate since October 2008, according to an analysis of Census Bureau data released by Associated General Contractors. The level was an increase of 0.8 percent compared to April, and an 8.2 percent year-over-year hike compared to May 2014.

Private nonresidential spending jumped 1.5 percent for the month and 13 percent year over year, while private residential spending rose 0.3 percent and 7.8 percent respectively. Public construction spending increased 0.7 percent and 2.8 percent year over year. New residential construction jumped 13 percent (21 percent in multi-family and 11 percent single family), but improvements dropped 3.4 percent.

Manufacturing construction leapt 70 percent, led by a doubling of spending for chemical plants and tripling of spending for transportation equipment plants. Power construction – conventional and renewable power plus oil and gas fields and pipelines – dropped 22 percent year over year. Commercial rose 11 percent and office construction surged by 27 percent.

Housing starts jumped 27 percent from June 2014 to June 2015.

More than 30 refining expansions worth $14 billion in total are underdevelopment across the United States as the industry hustles to take advantage of the oil glut, according to the Houston Chronicle’s FuelFix blog, adding that the refinery industry faces a shortage of workers with experience managing such investments.

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