Construction Spending Rebounds Sharply

Construction spending jumped by 1.8% in July, beating expectations for a 1.0% rebound.

Making things even better, spending in June fell by just 0.9%, which compares to an earlier estimate of a 1.8% decline.

Both private and public construction spending saw grwoth.

From the Census:

PRIVATE CONSTRUCTION

Spending on private construction was at a seasonally adjusted annual rate of $US701.7 billion, 1.4 per cent (±0.8%) above the revised June estimate of $US692.2 billion. Residential construction was at a seasonally adjusted annual rate of $US358.1 billion in July, 0.7 per cent (±1.3%)* above the revised June estimate of $US355.6 billion. Nonresidential construction was at a seasonally adjusted annual rate of $US343.6 billion in July, 2.1 per cent (±0.8%) above the revised June estimate of $US336.6 billion.

PUBLIC CONSTRUCTION

In July, the estimated seasonally adjusted annual rate of public construction spending was $US279.6 billion, 3.0 per cent (±3.0%)* above the revised June estimate of $US271.5 billion. Educational construction was at a seasonally adjusted annual rate of $US63.5 billion, 1.6 per cent (±4.9%)* above the revised June estimate of $US62.5 billion. Highway construction was at a seasonally adjusted annual rate of $US84.8 billion, 6.9 per cent (±7.7%)* above the revised June estimate of $US79.3 billion.

Here’s a breakdown by type of construction.

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