Construction Spending Rises To 2-1/2 Year High
Construction spending in June rose to a 2-1/2 year high at a seasonally adjusted annual rate of $842.1 billion after a 0.4% monthly gain, according to the U.S. Census Bureau of the Department of Commerce. Spending increased 7% y-o-y due mainly to increases in private construction. For the first 6 months of 2012, construction spending increased 9% from the same period last year to $387.1 billion.
Private construction spending increased 0.7% monthly to an annual rate of $567.9 billion, with increases in both residential and nonresidential construction. Residential construction spending gained 1.3% from May to an annual rate of $265.6 billion in June along with nonresidential construction gaining a slight 0.1% to an annual pace of $302.3 billion in June.
Public construction spending for June remained at nearly the same level as May at an annual pace of $274.2 billion. There was a 3.7% increase in transportation spending from May to June along with a 1.5% monthly increase in highway and street spending. However, commercial construction spending dropped 7.5% monthly and 17.8% annually.
Source: U.S. Census Bureau of the Department of Commerce