New Homes Lead Construction Spending Higher

The ‘Value of Construction Put inrnPlace’ survey for August was published on Tuesday, three weeks after itsrnscheduled release.  The Census Bureaurnreport provides dollar values for construction work done each month on both newrnand existing structures and in both the public and private sectors. The Augustrndata was delayed by the recently ended federal government shutdown.</p

Overall, the value of construction putrnin place during the month was 7.1 percent ahead of August 2012 numbers and<bincreased 0.6 percent from July.  On arnseasonally adjusted annualized basis the value of all construction put in placernin August was $915.05 billion.</p

Total residential construction, publicrnand private, was valued on a seasonally adjusted annual basis at $346.46rnbillion compared to $342.14 billion in July, an increase of 1.3 percent.rnResidential construction increased 18.3 percent over the level of one year earlierrnwhen the total was $292.78 billion. </p

As is typical for the survey, the private sector accounted for the vast majority--spending anrnannualized $340.21 billion– an increase of 1.2 percent from July andrn18.7 percent from August 2012.  The residentialrnconstruction total represented more than half of all private sectorrnconstruction expenditures for August, an annualized total of $640.51 billion,rnand its year over year growth was more than three time greater than that of thernnon-residential component which rose 4.3 percent</p

The $6.24 billion spent in the publicrnsector on residential construction was up 4.3 percent from July and 0.5 percentrnfrom one year earlier.  Residentialrnconstruction represented only a small fraction of the $274 billion total valuernof all construction put in place in the public sector. </p

On a non-seasonally adjusted basis totalrnresidential expenditures in August were $33.77 million of which $33.23 millionrnwas in the private sector.  The year-to-datern(YTD) value of all residential construction is $220.78 billion, an increase ofrn20.0 percent from YTD figures in 2012. rnIn the private sector the YTD figure for residential construction isrn$216.82 billion, a 20.5 percent increase over 2012. 

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