Economy
US construction spending slips in July
Written by David Schollaert
September 5, 2024
Construction spending in the US in July was slightly lower than June. Despite the decline, it increased notably year on year (y/y).
The US Census Bureau reported July construction spending to be an estimated $2.168 trillion on a seasonally adjusted annual rate (SAAR). While this was 0.3% below June’s revised spending rate, it was 6.7% higher than spending in July 2023.
Residential construction spending, at $941.6 billion in July, was off 0.4% month on month (m/m) but 7.7% higher y/y.
July spending on nonresidential construction projects was also marginally down vs. spending in June but was 5.9% higher than July 2023.
Within the nonres category, spending was highest on educational construction. Spending in this subcategory rose 0.9% m/m to $100.8 billion in July. State and local government spending slipped 0.1% and outlays on federal government projects jumped 2.1%.
Commenting on July’s data, the Associated General Contractors of America (AGC) noted, “Nearly all spending categories show increases from a year ago but have fluctuated in recent months.”
AGC added that while demand for construction remains elevated, demand for workers remains even stronger.
Census figures show total construction spending has been rising notably in recent years (see Figure 1). Spending on residential projects has more or less leveled out over the past year after peaking in 2022. At the same time, spending on nonresidential projects has been surging in recent years.
David Schollaert
Read more from David SchollaertLatest in Economy
House committee blocks GOP budget proposal
The budget proposal has big implications for steel and manufacturing.
Manufacturing in New York state contracts again in May
Manufacturing activity in New York state declined for the third consecutive month, according to the May Empire State Manufacturing Survey from the Federal Reserve Bank of New York. Responding firms continue to forecast weaker business conditions in the coming months.
Chicago Business Barometer falls back in April, remains in contraction
The Chicago Business Barometer declined in April, reversing March’s gains, according to Market News International (MNI) and the Institute for Supply Management (ISM).
Fewer manufacturers optimistic about the economy
PMA’s April report shows that only 16% of surveyed manufacturers anticipate an increase in economic activity in the next three months (down from 23% in March)
Architecture billings continue to slide in March
Architecture firms said billings continued to decline in March, according to the latest Architecture Billings Index (ABI) released by the American Institute of Architects (AIA) and Deltek.