Weak public spending has been largely blamed for a fall in May’s construction spending figure in the US.
Wells Fargo reported that total seasonally-adjusted spending across the industry stood at 0.8%, equating to US$ 1,143.3 billion – down from April’s figure of US$ 1,152.4 billion.
The report stated highway and street, as well as education construction work both saw a drop in activity during May, while federal highway projects fell significantly, by 14.2%.
Across the board, the report paints a gloomy picture, with private single-family housing construction down 0.3%.
On a more positive note, multifamily residential construction is enjoying a continuing upward trend, rising 23.9% year-on-year.
Wells Fargo said, “Although it’s too early to tell if the recent US bond rally resulting from the Brexit vote will keep long-term US Treasury yields low, if sustained, we could see another refinancing wave, which will keep homeowners in place.”