RealNews / Construction Spending Dips Slightly, Still 6% Above 2005

Construction Spending Dips Slightly, Still 6% Above 2005

Construction spending fell 0.4% in May 2006 according to a Commerce Department report released today. The current seasonally adjusted annual rate of $1,206.2 billion is still 6 percent above the rate in May 2005. Private construction fell 0.6% with residential construction down 0.8% and nonresidential construction down 0.3%. Public construction rose 0.7% including a 0.5% increase in education construction and a 0.1% increase in highway construction.

construction spending

MAY 2006 CONSTRUCTION AT $1,206.2 BILLION ANNUAL RATE

The U.S. Census Bureau of the Department of Commerce announced today that construction spending during May 2006
was estimated at a seasonally adjusted annual rate of $1,206.2 billion, 0.4 percent (Â±1.4%)* below the revised April
estimate of $1,210.5 billion. The May figure is 6.0 percent (Â±2.2%) above the May 2005 estimate of $1,137.5 billion.

During the first 5 months of this year, construction spending amounted to $457.4 billion, 8.6 percent (Â±1.9%) above the
$421.1 billion for the same period in 2005.

PRIVATE CONSTRUCTION

Spending on private construction was at a seasonally adjusted annual rate of $939.4 billion, 0.6 percent (Â±1.4%)* below
the revised April estimate of $945.4 billion. Residential construction was at a seasonally adjusted annual rate of $651.2
billion in May, 0.8 percent (Â±1.3%)* below the revised April estimate of $656.5 billion. Nonresidential construction was
at a seasonally adjusted annual rate of $288.2 billion in May, 0.3 percent (Â±1.4%)* below the revised April estimate of
$289.0 billion.

PUBLIC CONSTRUCTION

In May, the estimated seasonally adjusted annual rate of public construction spending was $266.8 billion, 0.7 percent
(Â±2.2%)* above the revised April estimate of $265.1 billion. Educational construction was at a seasonally adjusted annual
rate of $69.1 billion, 0.5 percent (Â±3.2%)* above the revised April estimate of $68.8 billion. Highway construction was at
a seasonally adjusted annual rate of $74.7 billion, 0.1 percent (Â±6.1%)* above the revised April estimate of $74.6 billion.

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