Private construction remained largely stagnant, holding at an annualized rate of $1.67 trillion. Within this segment, residential projects saw a slight gain of 0.3%, reaching $930.2 billion. This moderate growth suggests that high interest rates and broader economic pressures continue to dampen the expansion of private building activity.
In section Market Quotes
U.S. Construction Spending Growth Stalls in May
A 0.1% increase in U.S. construction spending during May fell short of analyst expectations, signaling a cooling trend in the building sector. While the Census Bureau reported a seasonally adjusted rate of $2.21 trillion, the modest uptick failed to reach the 0.2% growth forecast previously anticipated by Wall Street analysts.
Public sector investment provided a slight buffer against the overall slowdown, rising 0.5% to reach $541.2 billion. Infrastructure and education projects drove this portion of the data, with school construction climbing to $113.4 billion and highway development reaching $150.6 billion. Both categories posted a 0.6% increase over April figures, highlighting a continued reliance on government-backed projects to sustain momentum in an otherwise sluggish market.
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