Construction spending slows in July

Construction spending edged down slightly in July for a third straight month.

The US Census Bureau estimated spending at a seasonally adjusted annual rate of $2,139 billion in July, down 0.1% from June’s revised rate of $2,140 billion. The July figure is 2.8% lower than a year ago.

July’s result is the lowest total since December 2023, according to Census data.

Private builds

Overall, private construction outlays were $1,623 billion in July at a seasonally adjusted annual rate. That’s about 0.2% below the revised June estimate, the report said. Residential construction spending ticked 0.1% higher month over month to $886.5 billion, while nonresidential construction outlays were down 0.5% to $736.7 billion in July.

Public projects

Public construction spending edged 0.3% higher in July to $515.8 billion. Despite the gain, both education and highway construction lagged, slipping 0.1% to $111.7 billion and $142.8 billion, respectively.

The chart below shows a rise in spending in recent years, particularly in nonresidential investment, despite the current slowdown.

David Schollaert

David Schollaert is deputy editor-in-chief for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. He can be contacted at david@steelmarketupdate.com or 724-720-1008.