Total construction spending increased 0.9% month-over-month in May (consensus 0.4%) after increasing a downwardly revised 0.4% (from 1.2%) in April. Total private construction was up 1.1% month-over-month while total public construction rose 0.1% month-over-month. On a year-over-year basis, total construction spending was up 2.4%.
The key takeaway from the report is the renewed strength in new single family construction, which reflects the pickup in demand for housing despite the jump in mortgage rates.
Treasury yields fell after the data releases.
The 2-yr note yield, at 4.92% before the data, is up one basis point to 4.88%.