by Calculated Risk on 8/01/2019 10:16:00 AM
Thursday, August 01, 2019
From the Census Bureau reported that overall construction spending declined in June:
Construction spending during June 2019 was estimated at a seasonally adjusted annual rate of $1,287.0 billion, 1.3 percent below the revised May estimate of $1,303.4 billion. The June figure is 2.1 percent below the June 2018 estimate of $1,314.8 billion.Both private and public spending decreased:
Spending on private construction was at a seasonally adjusted annual rate of $962.9 billion, 0.4 percent below the revised May estimate of $967.0 billion. ...Click on graph for larger image.
In June, the estimated seasonally adjusted annual rate of public construction spending was $324.1 billion, 3.7 percent below the revised May estimate of $336.4 billion.
This graph shows private residential and nonresidential construction spending, and public spending, since 1993. Note: nominal dollars, not inflation adjusted.
Private residential spending had been increasing - but turned down in the 2nd half of 2018 - and is now 25% below the bubble peak.
Non-residential spending is 10% above the previous peak in January 2008 (nominal dollars).
Public construction spending is at the previous peak in March 2009, and 24% above the austerity low in February 2014.
The second graph shows the year-over-year change in construction spending.
On a year-over-year basis, private residential construction spending is down 8%. Non-residential spending is down slightly year-over-year. Public spending is up 6% year-over-year.
This was below consensus expectations, however spending for April and May was revised up. Another weak construction spending report.
Posted by Calculated Risk on 8/01/2019 10:16:00 AM