Construction Spending Rises in July; Highways up 7.1 Percent

The U.S. Census Bureau reported that construction spending in July was estimated at a seasonally adjusted annual rate of $1,315.4 billion, 0.1 percent (±1.5 percent) above the revised June estimate of $1,314.2 billion.

The July figure is 5.8 percent (±1.8 percent) above the July 2017 estimate of $1,242.8 billion. During the first seven months of this year, construction spending amounted to $740.5 billion, 5.2 percent (±1.2 percent) above the $703.7 billion for the same period in 2017.

In July, the estimated seasonally adjusted annual rate of public construction spending was $304.5 billion, 0.7 percent (±3.0 percent) above the revised June estimate of $302.3 billion.

Highway construction was at a seasonally adjusted annual rate of $94.2 billion, 0.4 percent (±7.1 percent) above the revised June estimate of $93.8 billion. Educational construction was at a seasonally adjusted annual rate of $71.6 billion, 2.1 percent (±5.9 percent) above the revised June estimate of $70.1 billion.

Spending on private construction was at a seasonally adjusted annual rate of $1,010.9 billion, 0.1 percent (±0.7 percent) below the revised June estimate of $1,011.9 billion.

  • Residential construction was at a seasonally adjusted annual rate of $560.1 billion in July, 0.6 percent (±1.3 percent) above the revised June estimate of $556.7 billion.
  • Nonresidential construction was at a seasonally adjusted annual rate of $450.9 billion in July, 1.0 percent (±0.7 percent) below the revised June estimate of $455.3 billion.

Most major segments had gains, Simonson observed. The largest public categories recorded year-to-date gains of 3.6 percent for highway construction, 0.6 percent for educational construction and 14.0 percent for transportation construction.

Of the three private residential spending categories, single-family home building rose 8.5 percent, multifamily dipped 0.9 percent and improvements to existing building climbed 9.4 percent. Among private nonresidential spending niches, the largest – power construction (including oil and gas field and pipeline structures) – edged up 0.4 percent, commercial (retail, warehouse and farm) construction rose 4.7 percent, office construction increased 5.8 percent and manufacturing construction declined 7.2 percent.

 

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2018-09-11T09:06:06+00:00

About the Author:

Jim Madsen has been in the communications and marketing fields for over 25 years. He is currently the marketing manager for ACG Materials.