WASHINGTON – U.S. construction spending posted a solid gain in May, pushing total activity to the highest point since the fall of 2008, with the strength led by a big jump in non-residential projects.
The Commerce Department says that total construction spending increased 0.8 percent in May following an even bigger 2.1 percent advance in April. The gains pushed totaled activity to a seasonally adjusted annual rate of $1.04 trillion, the best showing since October 2008.
All major categories showed increases in May, led by a 1.5 percent rise in non-residential building, which reflected increases in spending on hotels, manufacturing facilities and amusement parks. Residential construction was up a more modest 0.3 percent. Spending on government projects rose 0.7 percent.
Construction activity is expected to be a source of strength this year.