Residential Construction Spending Stayed Strong in July

Construction contributed nearly arntrillion dollars to the U.S. economy on a seasonally adjusted annualized basisrnin July, an increase of 0.6 percent from June and 5.2 percent from July 2012rnthe Census Bureau announced today.   All of the improvement came from privaternsector construction which was up 0.9 percent for the month and 9.5 percent fromrnone year earlier to a seasonally adjusted rate of $631.40 billion.</p

The private sector gains were offset inrnpart by a slide in public expenditures which dropped to $269.42 billion from $270.11rnbillion in June, a loss of 0.3 percent, and were down 3.7 percent from a yearrnearlier.</p

Along with office construction whichrnincreased 29.3 percent year-over-year, housing was a bright spot in the privaternconstruction sector.  Overall residentialrnconstruction grew by 0.6 percent in July from a seasonally adjusted annual raternof $332.65 billion in June to $334.58 billion in July.  This rate was 17.2 percent above the $285.55rnbillion posted in July of 2012.  </p

The value of new single-family residencesrnput in place in July grew by 0.5 percent to a seasonally adjusted annual raternof $168.19 billion from $167.35 billion the month before.  The dollar volume of construction in thisrnsector was 29.3 percent higher than in July 2012 when expenditures for singlernfamily construction totaled $130.09 billion.</p

Private construction of multifamilyrnresidences rose only 0.1 percent from June’s annualized figure of $31.83rnbillion to $31.87 billion but was 39.3 above the rate of construction in Julyrn2012 of $22.88 billion.  </p

On a non-seasonally adjusted basis privaternresidential construction contributed $31.73 billion to the economy in Julyrncompared 27.20 billion a year earlier. rnExpenditures year-to-date in 2013 are $183.22 billion, 20.7 percentrnabove the YTD figure of $151.85 billion in July 2012.</p

Of the July residential constructionrndollar $15.75 billion was for single family construction and 2.81 billion forrnmultifamily construction.  The respectivernfigures in 2012 were $12.19 billion and $1.98 billion.  The 2013 YTD figure for single familyrnconstruction is $92.14 billion, 32.9 percent above the 2012 YTD expenditures ofrn$69.33 billion.  Multifamily constructionrnput in place thus far in 2013 has a value of $17.73 billion compared to $11.69rnYTD in 2012, an increase of 51.7 percent.</p

Total public expenditures on residentialrnconstruction in July were at a seasonally adjusted annual rate of 6.03 billion,rndown 3.1 percent from June and 2.4 percent from a year earlier.  On a non-seasonally adjusted basis public residentialrnconstruction during the month was $517 million and year-to-date is $3.44rnbillion, down 4.7 percent from the 2012 YTD figure of $3.60 billion.

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