by Calculated Risk on 8/01/2024 10:30:00 AM
From the Census Bureau reported that overall construction spending decreased:
Construction spending during June 2024 was estimated at a seasonally adjusted annual rate of $2,148.4 billion, 0.3 percent below the revised May estimate of $2,154.8 billion. The June figure is 6.2 percent above the June 2023 estimate of $2,023.0 billion.
emphasis added
Both private and public spending decreased:
pending on private construction was at a seasonally adjusted annual rate of $1,664.6 billion, 0.3 percent below the revised May estimate of $1,668.8 billion. …
In June, the estimated seasonally adjusted annual rate of public construction spending was $483.9 billion, 0.4 percent below the revised May estimate of $486.0 billion.
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.
Residential (red) spending is 5.4% below the recent peak in 2022.
Non-residential (blue) spending is 0.4% below the peak in January 2024.
Public construction spending is 0.6% below the peak in April 2024.
The second graph shows the year-over-year change in construction spending.
On a year-over-year basis, private residential construction spending is up 7.3%. Non-residential spending is up 4.2% year-over-year. Public spending is up 7.3% year-over-year.
This was below consensus expectations for 0.2% increase in spending, however, total construction spending for the previous two months was revised up.
This is probably just the start of weakness for private non-residential construction.
