Analysis
August 2, 2021
June Construction Spending: Private Up, Public Down
Written by David Schollaert
The U.S. construction sector saw mixed results in June. Overall spending rose by 0.1%, the Commerce Department reported, as an increase in private projects was offset by a decline in the public building segment. Supply chain disruptions, rising materials prices and labor shortages continue to hamper a construction sector trying to rebound from the COVID downturn.
Total construction spending during June, at a seasonally adjusted annual rate, was $1.552 trillion, 0.1% above May’s revised pace of $1.551 trillion, reported the U.S. Census Bureau. Construction spending, which accounts for around 4% of U.S. gross domestic product, rose by 8.2% on a year-on-year basis in June after falling 0.2% in May. Year-to-date construction spending was $736.5 billion, up 5.6% versus 2020, a disappointing result as the marketplace is nearly a year removed from the worst of the pandemic.
