Construction Insider is a weekly roundup of the latest news and insights in construction.
US construction spending drops in May
An unexpected drop in US construction spending was observed in May coinciding with a two-year low dip in private construction investment. CNBC
- Construction spending in May decreased to 0.8%, the steepest drop since November of last year.
- This contradicts an earlier prediction by economists that construction spending would increase by 0.1% in May.
- Private projects spending has dipped to 0.7% in May, its lowest value since November 2017. A 1% drop was also observed in the prior month.
- Private residential outlays have been sliding on a negative slope for five straight months.
US-Canada lumber export value dips to 22.8% in January-May
The value for lumber exports from US to Canada has dropped 22.8% to 1.9 billion between January and May this year, according to data from USDA. Lesprom
- Lumber export value has decreased but only a 0.58% decline was observed in year-over-year lumber export data.
- Average price for lumber from Canada also decreased 22.4% to $143 per cubic meter.
- Lumber imports declined to 12.8 million by 0.19%, and lumber import value also dipped 18% and is now pegged at $2.5 billion.
21,000 construction jobs added in June
A net value of 21,000 jobs in the construction sector was added in June, based on the US Bureau of Labor Statistics data analyzed by Associated Builders and Contractors (ABC). FCP
- A total of 224,000 jobs were opened on a year-over-year basis, corresponding to an overall 3.1% employment increase.
- The nonresidential sector opened 14,900 net jobs in June and around 146,000 jobs in the last 12 months.
- Construction unemployment rate was recorded to be 4% in June, a 0.7% decrease from 12 months ago.
- “Finding and retaining skilled workers remains a primary issue, implying that compensation growth will continue to increase,” said ABC chief economist Anirban Basu.