Tuesday, September 03, 2019

Construction Spending Increased Slightly in July, Down 2.7% YoY

by Calculated Risk on 9/03/2019 11:20:00 AM

From the Census Bureau reported that overall construction spending declined in July:

Construction spending during July 2019 was estimated at a seasonally adjusted annual rate of $1,288.8 billion, 0.1 percent above the revised June estimate of $1,288.1 billion. The July figure is 2.7 percent below the July 2018 estimate of $1,324.8 billion.
Private spending decreased and public spending increased:
Spending on private construction was at a seasonally adjusted annual rate of $963.1 billion, 0.1 percent below the revised June estimate of $963.7 billion. ...

In July, the estimated seasonally adjusted annual rate of public construction spending was $325.7 billion, 0.4 percent above the revised June estimate of $324.3 billion.
emphasis added
Construction Spending Click on graph for larger image.

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.

Year-over-year Construction SpendingThe second graph shows the year-over-year change in construction spending.

On a year-over-year basis, private residential construction spending is down 7%. Non-residential spending is down 3% year-over-year. Public spending is up 4% year-over-year.

This was below consensus expectations. Another weak construction spending report.