The value of construction put-in-place increased 0.4% month-on-month in May (4.5% year-on-year), slightly less than the 0.5% expected by the Action Economics Forecast Survey. April's gain was cut in half to 0.9% m/m and March's drop was revised to a smaller decline. On net the level of construction spending in April was lower than originally reported. Despite these weaker readings, second quarter construction spending is 1.2% (4.8% annualized) above the first quarter level.

Private sector building activity, which is over three times the size of public sector spending, increased 0.3% m/m (4.4% y/y). Residential construction spending grew 0.8% (6.6% y/y) while non-residential declined 0.3% (+1.8% y/y). As with total construction, the revisions to March and April left spending in all of these categories at a lower level in April than originally reported. In the residential sector, single family construction increased 0.6% in May, the volatile multi-family sector rose 1.6% and home improvements were up 0.9%.

The value of public sector building activity grew 0.7% (4.7% y/y) in May after an upwardly revised 2.3% jump in April (was -1.3%). March's increase was revised slightly lower to 1.0% m/m. The largest component of public construction, highway and street edged down 0.2%, while the second largest, education rose 0.9%.

The construction spending figures, some of which date back to 1946, are in Haver's USECON database. The expectations reading can be found in the AS1REPNA database.