U.S. Construction Spending Edges Up 0.1% Month-over-Month in May

en.Wedoany.com Reported - According to the latest data from the U.S. Census Bureau, total construction spending in May edged up 0.1% month-over-month but declined 1.5% year-over-year. Residential spending increased 0.4% month-over-month and rose 1.8% year-over-year; nonresidential spending was flat month-over-month, with a cumulative decline of 3.8% since May 2025.

Anirban Basu, chief economist at the Associated Builders and Contractors, stated that private nonresidential spending fell 0.3% month-over-month, marking the seventh consecutive monthly decline, with a year-over-year drop of 6.6%. Basu attributed the weakness in this sector primarily to the continued contraction in manufacturing-related construction spending: as projects supported by the CHIPS Act gradually wind down, the entire segment lacks growth momentum.

Although some nonresidential sub-sectors such as religious, recreational, and leisure facilities have seen growth, Basu noted that these smaller segments cannot sustain the overall nonresidential market, especially when larger categories are underperforming. He cited examples such as warehouse construction spending, which appeared to stabilize in early 2026 but has now declined for three consecutive months, down 8.5% year-over-year; general office construction spending remains on a downward trend, with a cumulative decline of 11.9% since May 2025. Spending on transportation infrastructure, such as highways and streets, has recorded a modest annual increase since last May. Basu indicated that current market momentum is primarily concentrated in the data center sector.