US Construction Spending Accelerates as Housing Starts Rise
U.S. construction spending exceeded expectations in May amid rising demand in the new-home market
July 6, 2023
Image: ungvar / stock.adobe.com
After a 0.4% increase in April, U.S. construction spending rose 0.9% in May, more than the 0.6% gain originally forecast by economists polled by Reuters. Spending on private construction projects rose 1.1%, while investment in residential construction rebounded 2.2% after a 0.9% drop the previous month. Spending in the market for single-family homes accelerated 1.7% in May amid an increase in housing starts, Reuters reports.
The Commerce Department said on Monday that construction spending rose 0.9% after gaining 0.4% in April.
Though the housing market has taken the biggest hit from the Federal Reserve's fastest monetary policy tightening cycle since the 1980s, an acute shortage of single-family homes available for sale is driving construction. Housing starts soared in May.
