Construction Spending Grows at Slowest Rate of 2014

According to the Census Bureau, the value of construction put in place in May 2014 was $81,353 (millions of real dollars). Compared to one year ago, spending in May was up 4.0%. This is the slowest rate of month-over-month growth in 2014. And, in every month this year, the month-over-month rate of change has decelerated. The slowing trend in the monthly data has started to affect the annual rate of change, which recorded slower growth for the first time since December 2013. 

Total residential spending is following a similar pattern in the monthly data, but the deceleration has been much more significant. The month-over-month rate of change has fallen to 4.5% in May from 19.5% in December. The annual rate of change has seen decelerating growth for five months. It is at its slowest rate of growth since January 2013.

Real construction spending is a good leading indicator for construction materials, hardware, and HVAC industrial production.