Construction spending declined by 0.1 percent between April and May to a seasonally adjusted rate of $2.139 trillion, amid declines in demand for a range of nonresidential and residential construction projects. However, construction spending levels are up 6.4 percent compared to May 2023, according to an analysis by the Associated General Contractors of America released today of new federal data. Association officials noted that public construction demand was up 0.5 percent for the month, helping offset declines in other types of activity.
“The Census Bureau today responded to requests by the association and others to show data centers separately from the overall private office category,” said Ken Simonson, the association’s chief economist. “While the overall category slipped just 1.7 percent in the latest 12 months, that total hides a 69.0 percent jump in data center construction, which nearly offset an 18.5 percent plunge in spending on actual private offices.”
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