Total US construction spending registered a modest increase of 0.1% in May, reaching an annualized rate of $2.210 trillion. This figure was consistent with economists' predictions and followed a revised 0.3% gain in April, initially reported as 0.4%. Compared to the previous year, overall construction activity in May declined by 1.5%. For the year-to-date period from January to May, total spending stood at $858.4 billion, marking a 2.7% decrease from the corresponding period in 2025.
These construction figures provide insight into the health of the US economy, which can indirectly influence the US Dollar and broader market sentiment, relevant for traders in forex and CFD markets. Stronger or weaker economic data can sometimes lead to shifts in monetary policy expectations, impacting currency valuations.
Detailed Sector Performance in May
- Private Construction: This segment, totaling $1.669 trillion annualized, remained largely unchanged month-over-month.
- Residential Construction: A key component of private spending, residential construction saw a 0.3% rise to $930.2 billion.
- Nonresidential Construction: Conversely, private nonresidential projects experienced a 0.3% decrease, settling at $738.7 billion.
- Public Construction: Government-funded projects demonstrated stronger growth, climbing 0.5% to an annualized $541.2 billion.
- Educational Construction: Within the public sector, educational building projects increased by 0.6% to $113.4 billion.
- Highway Construction: Spending on highways also rose by 0.6%, reaching $150.6 billion.
In summary, May's construction data indicates a largely flat performance across the sector. While residential building showed some resilience and public projects saw modest gains, private nonresidential construction experienced a slight contraction. This mixed picture reflects ongoing adjustments within various segments of the construction industry.
📰 Based on reporting from: ForexLive →