Construction Spending Scaled Back in July, Gaining at Slower Pace

Construction spending was estimated at a seasonally adjusted annual rate of $1,315.4 billion in July, 0.1% higher than the revised estimate for June of $1,314.2 billion. That’s still 5.8% higher than the July 2017 estimate of $1,242.8 billion.

The forecast range was 0.1% to 2.3%, with the consensus calling for a 0.4% gain.

During the first 7 months of this year, construction spending amounted to $740.5 billion, or 5.2% higher than the $703.7 billion for the same period in 2017. The previous month was revised higher from -1.1% initially reported to -0.8%.

Private Construction

Spending on private construction was at a seasonally adjusted annual rate of $1,010.9 billion, 0.1% below the revised June estimate of $1,011.9 billion. Residential construction was at a seasonally adjusted annual rate of $560.1 billion in July, which is still 0.6% above the revised June estimate of $556.7 billion.

Nonresidential construction was at a seasonally adjusted annual rate of $450.9 billion in July, 1.0% below the revised June estimate of $455.3 billion.

Public Construction

In July, the estimated seasonally adjusted annual rate of public construction spending was $304.5 billion, 0.7% above the revised June estimate of $302.3 billion. Educational construction was at a seasonally adjusted annual rate of $71.6 billion, 2.1% above the revised June estimate of $70.1 billion.

Highway construction was at a seasonally adjusted annual rate of $94.2 billion, which is 0.4% higher than the revised June estimate of $93.8 billion