May 2009 Construction Declines to $964 Billion Annual Rate

Construction spending during May 2009 was estimated at a seasonally adjusted annual rate of $964 billion, about 1% below the revised April estimate of $972.5 billion and 11.6% below the May 2008 estimate of $1,090.7 billion. During the first five months of 2009, construction spending reached $368.8 billion, nearly 12% below the $417.5 billion for the same period in 2008.

Residential spending is still declining. Residential construction fell 3.4% from $248.8 billion in April to $240.2 billion in May. It has been falling fairly steadily since January.

Nonresidential construction is still increasing. The nonresidential construction spending rate was about the same in May 2009 as it was in May 2008, although it has been increasing steadily since January 2009. Private nonresidential construction increased approximately 1% from about $406.9 billion in April to nearly $409 billion in May. This represents a 3.3% decrease from May 2008, however. Public construction was up 3.5% over May 2008 ($307.7 billion versus $297.2 billion), but down marginally from April 2009 (from $309.2 billion).

Craig DiLouie

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