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Const. Spending, Employment Declines in May SHARE July 6, 2021 Construction spending declined in May compared to the prior month, driven by continued drops in non-residential construction activity as firms struggle with supply chain disruptions, rising materials prices, and labor shortages, according to an analysis of new federal construction spending data. Officials with the association called on the Biden administration to remove tariffs on key construction materials, allow unemployment supplements to expire, and take steps to address supply chain backups. Construction spending in May totaled $1.55 trillion at a seasonally adjusted annual rate, a decrease of 0.3 percent from the pace in April, but 7.5 percent higher than the pandemic-depressed rate in May 2020. The residential construction segment climbed 0.2 percent for the month and 28.2 percent year-over-year.

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