by Calculated Risk August 1, 2024, 10:30 AM
From the Census Bureau report Overall construction spending decreased.
Construction spending in June 2024 is estimated at a seasonally adjusted annual rate of $2,148.4 billion, Less than 0.3 percent That was below the revised May estimate of $2.1548 trillion. The June figure was 6.2% higher than the June 2023 estimate of $2.23 trillion.
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Both private and public spending fell.
Private construction reserves were at a seasonally adjusted annual rate of $1.6646 trillion, 0.3 percent below the revised May estimate of $1.6688 trillion.
The seasonally adjusted estimated annual rate of public construction spending in June was $483.9 billion, 0.4 percent lower than the revised May estimate of $486.0 billion.
Click on the graph to enlarge the image.
This chart shows private residential and nonresidential construction spending and public spending since 1993. Note: Nominal dollars, not adjusted for inflation.
Housing (red) spending is 5.4% below its most recent 2022 peak.
Nonresidential (blue) spending is down 0.4% from its January 2024 peak.
Public construction spending is 0.6% below its April 2024 peak.
The second chart shows the year-over-year change in construction spending.
Compared to the previous year, Private housing construction spending increased 7.3%Non-residential spending increased 4.2% year-on-year. Public spending increased 7.3% year-on-year.
That was below the consensus forecast of a 0.2% increase in spending, but total construction spending was revised upwards over the past two months.
This is probably just the beginning of weakness in private nonresidential construction.
