Both residential and non-residential construction spending continue to grow in the United States. Total construction spending for May 2018 was an annualized $1.31 trillion, up from $1.25 trillion in May 2018.
We recently wrote about soaring prices (and demand) for construction related commodities globally.
Lumber or Timber is up 55% over the past year and Asphalt or Bitumen is up 35% over the past year. Even coal (which is one of the key raw materials) for steel production is up 45% over the year. Steel and Aluminium prices are up over 10% over the past year.
Back to the U.S., total non-residential construction spending is now well above the peak just before the last recession. Total non-residential construction spending for May 2018 was an annualized $749 billion, up from $727 billion in May 2017.
Residential spending is still less than the peak reached before the last recession but is still up on a year earlier. Total residential construction spending for May 2018 was an annualized $560 billion, up from $527 billion in May 2017.
Total employment in the construction sector is down 7% since 2007 but is growing gradually.