Construction Spending Hits 2-1/2 Year Peak in May

Construction spending in May reached the highest level since December 2009 as widespread gains in private nonresidential construction, single-family and multifamily homebuilding more than offset a continuing downturn in public construction, according to an analysis of new federal data released today by the Associated General Contractors of America.  Association officials said they expect the disparity between private and public construction is likely to persist, although enactment of a federal highway and transit bill will cushion the decline in public spending. “It is encouraging to see such a broad-based pickup in private construction,” said Ken Simonson, the association’s chief economist. Simonson noted that private nonresidential spending climbed for the third month in a row and was 19 percent higher than in May 2011. Residential construction surged 3 percent for the month and 8 percent year-over-year, with new multifamily construction leaping 6 percent and 50 percent, respectively, and single-family homebuilding up 2 percent and 15 percent. Read the full press release here. The news was covered by the Sarasota Herald-Tribune, CBS Radio News, Milwaukee Biz Times, Central New York Business Journal, and International Construction.