­­­Construction Put in Place, (CPIP): Total U.S. construction spending continued to perform well in May 2021, especially in the private sector. Census Bureau non-seasonally adjusted (NSA), constant dollar CPIP data showed that May’s three month total (3MT) construction expenditures grew by 10.2% year on year (y/y) to $376.9 billion. On a 12MT basis, private expenditures advanced 10.0% y/y, state & local expenditures grew by 3.0% y/y, and federal spend increased by 1.6% y/y.

Total Construction: Table 1 presents CPIP data for total construction for both 3 month total and 12 month total y/y metrics. Momentum, defined as 3MT minus 12MT, is also shown. Momentum provides market direction with green indicating stronger activity and red indicating slowing activity. Private construction accounted for 76.0% of the total three months’ expenditures ending in May. State & local spending accounted for 22.5%, while the remaining 1.5% was for federally financed projects. The private sector posted 14.8% growth for 3MT y/y and 10.0% growth for 12MT y/y, resulting in a 4.8% increase in momentum for the month of May.  

Single-family residential construction recorded a 40.2% increase on a 3MT y/y basis and a 21.3% increase on a 12MT basis. On a 3MT y/y basis, state and local construction recorded a 1.3% decrease in spending.

Non-residential Construction: Table 2 shows the breakdown of non-residential construction (NRC). The overall growth rate was 1.7% for 3MT y/y, and a 4.9% increase on a 12MT y/y basis, resulting in a -3.2% momentum.

Private NRC was up 3.3% for 3MT, but the 12MT value was a positive 5.2%, leading to a negative momentum of 1.9%. State and local expenditures were negative for 3MT and positive for 12MT y/y metrics.

At Gerdau we monitor the CPIP numbers every month to keep you informed on the health of the U.S. construction market.