June Construction Spending Buoyed by Public Sector

Public monies shored up construction spending figures inrnJune, just barely making up for a drop in expenditures from the privaternsector.  The U.S. Census Bureau said thatrnoverall construction spending rose a scant 0.1 percent from May to June with<bprivate construction spending down 0.5 percent and public spending rising 1.6rnpercent. </p

Overall construction spending was at a seasonally adjustedrnannual rate of $1,064.6 billion in June compared to a revised May estimate ofrn1,063.5 billion.  The June figure is 12rnpercent higher than a year earlier when total expenditures were at a rate ofrn$950.3 billion.  It was the fourthrnconsecutive month that the rate of annual spending topped a trillion dollars.</p

During the first six months of 2015 construction spendingrnwas estimated at $482.7 billion, 8.0 percent higher than the $446.8 billionrnspent during the same period in 2014.  Onrna non-seasonally adjusted based June spending was estimated at $96.6 billionrncompared to $90.8 billion in May.</p

Private sector expenditures for all categories ofrnconstruction were at a seasonally adjusted annual rate of $766.4 billionrncompared to $770.0 billion in May and was 13.7 percent above the rate of $674.1rnbillion in June 2014.  Non-seasonallyrnadjusted, the month’s expenditures were $68.3 billion and year-to-date spendingrnis 9.1 percent higher than last year; $354.5 billion to $325.0 billion.</p

Privately funded residential construction expenditures were atrnan annual rate of $371.6 billion, a month-over-month increase of 0.4 percentrnand an annual bump of 12.8 percent.  Newrnsingle-family construction accounted for $210.9 billion and multi-familyrnconstruction for $51.6 billion of total residential dollars.  The increase in new single-familyrnconstruction is the same on an annual basis as residential constructionrnoverall, 12.8 percent, but multi-family construction was up 23.7 percent from arnyear earlier.</p

On a non-adjusted basis private residential spending in Junerntotaled $34.5 billion, up from $32.7 billion the previous month.  Single family spending for the two months wasrn$18.9 billion and $18.0 billion respectively while multi-family constructionrnwas $4.5 billion versus $4.2 billion. rnSpending for the first six months of 2015 for all residential constructionrnwas 8.5 percent higher than a year earlier at $173.1 billion whilernsingle-family construction rose 13.6 percent and multi -family spending by 25.6rnpercent.</p

Total construction spending in the public sector rose 1.6rnpercent from May and 8.0 percent year-over-year to $298.2 billion.  Residential spending, while still only arnsmall factor in the public sector, is running at an annual rate 29.2 percentrnhigher than a year ago at $6.4 billion. rnThat figure, however, was down 3.8 percent from May.  Year-to-date public sector residentialrnspending is up 30.5 percent from the same period last year.

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