1. Home
  2. Infrastructure Urban
  3. ECONOMY & POLICY
  4. USA sees a decline in construction spending of 0.1% in 2024
USA sees a decline in construction spending of 0.1% in 2024
ECONOMY & POLICY

USA sees a decline in construction spending of 0.1% in 2024

03 Jul 2024 2 Min Read CW Team
In a surprising turn, US construction spending decreased in May due to higher mortgage rates dampening single-family homebuilding activity, with the housing sector's recovery expected to be subdued despite improvements in housing supply. According to the Commerce Department's Census Bureau, construction spending fell by 0.1% following an upwardly revised 0.3% increase in April. Economists surveyed by Reuters had predicted a 0.2% rebound in construction spending, following a previously reported 0.1% decline in April. Year-on-year, construction spending saw a 6.4% increase in May. Expenditure on private construction projects dropped by 0.3% in May, following a 0.4% rise the previous month. Investment in residential construction decreased by 0.2% after a strong 0.9% surge in April, with spending on new single-family construction projects declining by 0.7%. Spending on multi-family housing remained unchanged. The rise in mortgage rates during May negatively impacted homebuilder confidence as well as homebuilding and sales activity. Despite this, the housing market has seen notable improvements in supply due to the higher borrowing costs restraining demand, potentially limiting growth in new construction. Inventory of previously owned homes in May reached its highest level since August 2022, while new housing supply hit its peak in over 16 years. Residential investment is expected to have significantly slowed in the second quarter, following robust double-digit growth in the January?March period. In May, spending on private non-residential structures such as factories also fell by 0.3%. Meanwhile, investment in public construction projects saw a 0.5% increase after no change in April, with state and local government spending up by 0.2% and federal government project outlays surging by 3.1%.

In a surprising turn, US construction spending decreased in May due to higher mortgage rates dampening single-family homebuilding activity, with the housing sector's recovery expected to be subdued despite improvements in housing supply. According to the Commerce Department's Census Bureau, construction spending fell by 0.1% following an upwardly revised 0.3% increase in April. Economists surveyed by Reuters had predicted a 0.2% rebound in construction spending, following a previously reported 0.1% decline in April. Year-on-year, construction spending saw a 6.4% increase in May. Expenditure on private construction projects dropped by 0.3% in May, following a 0.4% rise the previous month. Investment in residential construction decreased by 0.2% after a strong 0.9% surge in April, with spending on new single-family construction projects declining by 0.7%. Spending on multi-family housing remained unchanged. The rise in mortgage rates during May negatively impacted homebuilder confidence as well as homebuilding and sales activity. Despite this, the housing market has seen notable improvements in supply due to the higher borrowing costs restraining demand, potentially limiting growth in new construction. Inventory of previously owned homes in May reached its highest level since August 2022, while new housing supply hit its peak in over 16 years. Residential investment is expected to have significantly slowed in the second quarter, following robust double-digit growth in the January?March period. In May, spending on private non-residential structures such as factories also fell by 0.3%. Meanwhile, investment in public construction projects saw a 0.5% increase after no change in April, with state and local government spending up by 0.2% and federal government project outlays surging by 3.1%.

Next Story
Infrastructure Transport
22 Nov 2024

Odisha to Get Kharagpur-Visakhapatnam Expressway Soon: Minister

A new greenfield highway connecting Kharagpur in West Bengal and Visakhapatnam in Andhra Pradesh, passing through Odisha, is set to be constructed soon. This expressway is poised to become a vital logistics corridor, enhancing high-speed transportation in the region. Works Minister Prithviraj Harichandan shared that preliminary preparations for the project have already commenced. He emphasised that the expressway would play a crucial role in the Gati Shakti Framework of the Central government, describing it as a groundbreaking initiative in road construction for Odisha. Greenfield roads typi..

Read More
Next Story
Infrastructure Urban
22 Nov 2024

LTTS wins project to develop smart cities in Colorado USA

Mid-sized Indian IT services company L&T Technology Services (LTTS) announced on Monday a strategic partnership with the Colorado Smart Cities Alliance (CSCA) to develop smart city projects across Colorado by integrating innovation and technology. In a regulatory filing, LTTS stated that the collaboration would utilize its advanced engineering expertise to support CSCA's mission of enhancing urban living and creating sustainable ecosystems through smart city solutions. The partnership aims to develop sustainable, efficient, and technologically advanced communities by pooling resources and exp..

Read More
Next Story
Infrastructure Transport
22 Nov 2024

Bengaluru Metro to Expand to 175 km by 2026, Boosting Urban Mobility

Bengaluru’s metro network is set for a major expansion, aiming to extend its total length to 175 km by 2026. This ambitious project is part of the Namma Metro initiative, designed to improve connectivity across the city, alleviate traffic congestion, and promote sustainable urban mobility. The expansion involves constructing new metro corridors, such as the Purple Line and the Outer Ring Road-Airport Line, which will link major city hubs, commercial centres, and residential areas. This development is expected to enhance accessibility for commuters throughout Bengaluru. A key highlight of t..

Read More

Opinion Poll

Question : Which technological advancement do you believe will most transform the real estate industry in the coming years?

Latest updates

Odisha to Get Kharagpur-Visakhapatnam Expressway Soon: Minister
ROADS & HIGHWAYS
22 Nov 2024

Odisha to Get Kharagpur-Visakhapatnam Expressway Soon: Minister

LTTS wins project to develop smart cities in Colorado USA
SMART CITIES
22 Nov 2024

LTTS wins project to develop smart cities in Colorado USA

Bengaluru Metro to Expand to 175 km by 2026, Boosting Urban Mobility
RAILWAYS & METRO RAIL
22 Nov 2024

Bengaluru Metro to Expand to 175 km by 2026, Boosting Urban Mobility

Chennai Metro finishes piling work from Kodambakkam Powerhouse to Porur
RAILWAYS & METRO RAIL
22 Nov 2024

Chennai Metro finishes piling work from Kodambakkam Powerhouse to Porur

Ambuja, ACC stocks plunge after Gautam Adani's US indictments
ECONOMY & POLICY
22 Nov 2024

Ambuja, ACC stocks plunge after Gautam Adani's US indictments

Rajasthan govt and Centre to jointly run extended Jaipur Metro lines
RAILWAYS & METRO RAIL
22 Nov 2024

Rajasthan govt and Centre to jointly run extended Jaipur Metro lines

Hyderabad Civic Body Demolishes Five-Storey Building in Gachibowli
Real Estate
22 Nov 2024

Hyderabad Civic Body Demolishes Five-Storey Building in Gachibowli

Hill highway project to finish by 2026, says PWD minister
ROADS & HIGHWAYS
22 Nov 2024

Hill highway project to finish by 2026, says PWD minister

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000