IRVINE, CA-Housing construction is currentlythe one bright spot for construction spending nationwide,Julie Zisfein, senior associate and economist atAuction.com Research here, tells GlobeSt.com. Bothcommercial and institutionalconstruction have shown either flattening or significantdecline of late, leaving the housing sector responsible for anysmall gains in spending.

As we reported earlier this week, the US CensusBureau of the Department of Commerce has revealed thatconstruction spending during May was estimated at a seasonallyadjusted annual rate of $874.9 billion, which is 0.5% above therevised April estimate of $870.3 billion. The May figure is 5.4%above the May 2012 estimate of $830.4 billion, but has not meteconomists' expectations for an economy that some experts sayshould be well into recovery by now.

While the figure is not as positive as was predicted, it'simportant to note that spending is still increasing, but momentumhas slowed considerably, falling short of expectations, Zisfeinsays. “It's important to break it down and not look at just thenumber. Residential construction has seen lots ofgrowth, and it's not surprising. Construction for bothsingle-family and multifamilyhomes is thriving right now—in fact, residentialspending is at a level seen last in 2008.”