2012 Economic Calendar
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Construction Spending 
Released On 7/2/2012 9:00:00 AM For May, 2012
  PriorPrior RevisedConsensusConsensus RangeActual
Construction Spending - M/M change0.3 %0.6 %0.2 %-0.1 % to 1.0 %0.9 %
Construction Spending - Y/Y change6.8 %8.9 %7.0 %

Highlights
Construction appears to be picking up steam. Construction spending jumped 0.9 percent in May, following a 0.6 percent gain in April (originally up 0.3 percent). The consensus was for a 0.2 percent increase for May.

The increase in May was led by private residential outlays which increased 3.0 percent after a 1.7 percent boost in April. The new multifamily subcomponent showed the greatest strength but the new single-family subcomponent also was notably positive. Also behind the latest gain was a 0.4 percent rise in private nonresidential outlays. In contrast, public outlays declined 0.4 percent in May after a 0.9 percent drop the prior month.

On a year-ago basis, overall construction stood at up 7.0 percent in May, compared to 8.9 percent the month before.

Overall, the private sector is improving although from still low levels of activity. Nonetheless, these numbers are a plus for second quarter GDP.

On the news, equities declined but due to a negative ISM manufacturing report, released at the same time.

Market Consensus before announcement
Construction spending posted a 0.3 percent gain in April, following an upwardly revised 0.3 percent boost the month before (originally up 0.1 percent). The gain in April was led by private residential outlays which increased 2.8 percent after a 0.4 percent rise in March. For the latest month, new multifamily outlays jumped 4.1 percent while new single-family spending rose 1.8 percent. Public outlays fell 1.4 percent while private nonresidential outlays dipped 0.2 percent in April. Looking ahead, the 4.8 percent drop in May housing starts points to weakness in the private residential component of outlays.

Definition
The dollar value of new construction activity on residential, non-residential, and public projects. Data are available in nominal and real (inflation-adjusted) dollars. Why Investors Care
 
[Chart]
Over the last year, a decline in residential outlays has pulled down year-on-year growth for overall construction outlays. Nonresidential and public outlays are positive with nonresidential actually strong.
Data Source: Haver Analytics
 

 

2012 Released Schedule
Released On: 1/32/13/14/25/16/17/28/19/410/111/112/3
Release For: NovDecJanFebMarAprMayJunJulAugSepOct
 


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