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U.S. Construction Grows 0.9 Percent in May

Residential, commercial sectors show ongoing recovery.


U.S. construction spending rose to its highest level in nearly 2-1/2 years in May as investment in residential and federal government projects surged.

The U.S. Census Bureau of the Department of Commerce announced today that construction spending during May 2012 was estimated at a seasonally adjusted annual rate of $830.0 billion, 0.9 percent (±1.5%)* above the revised April estimate
of $822.5 billion.

The May figure is 7.0 percent (±2.0%) above the May 2011 estimate of $775.8 billion and the highest level since December 2009. Still, the level of spending is roughly half of what economists consider to be healthy.

During the first 5 months of this year, construction spending amounted to $310.5 billion, 9.4 percent (±1.6%) above the $283.8 billion for the same period in 2011.

Residential construction rose 3 percent to an annual rate of $261.3 billion, further evidence that housing has finally started to mount a modest recovery.

PRIVATE CONSTRUCTION
Spending on private construction was at a seasonally adjusted annual rate of $560.4 billion, 1.6 percent (±1.6%)* above the revised April estimate of $551.8 billion.

Residential construction was at a seasonally adjusted annual rate of $261.3 billion in May, 3.0 percent (±1.3%) above the revised April estimate of $253.8 billion.

Nonresidential construction was at a seasonally adjusted annual rate of $299.1 billion in May, 0.4 percent (±1.6%)* above the revised April estimate of $298.0 billion. This marked the the third straight monthly gain for nonresidential construction.

PUBLIC CONSTRUCTION
In May, the estimated seasonally adjusted annual rate of public construction spending was $269.6 billion, 0.4 percent (±2.1%)* below the revised April estimate of $270.7 billion.

Educational construction was at a seasonally adjusted annual rate of $65.0 billion, 3.0 percent (±3.8%)* below the revised April estimate of $67.0 billion.

Highway construction was at a seasonally adjusted annual rate of $78.0 billion, 0.5 percent (±6.3%)* below the revised April estimate of $78.4 billion.

Sources: U.S. Census Bureau, Reuters

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