Construction spending fell 1.1% in June

by Calculated risk on 01/08/2022 12:39:00 PM

The Census Bureau reported that overall construction spending increased:

Construction spending during June 2022 was estimated at a seasonally adjusted annual rate of $1.762.3 billion, 1.1 percent below May revised estimate of $1,781.9 billion. The June figure is 8.3 percent higher than the June 2021 estimate of $1,628.0 billion.
Confirmations added

Both private and public spending fell:

Spending on private construction came at a seasonally adjusted annual rate of $1416.4 billion, 1.3 percent lower than May’s revised estimate of $1,434.4 billion. …

In June, the seasonally adjusted annual rate of public construction spending was $345.9 billion, 0.5 percent below May’s revised estimate of $347.5 billion.

Click on the chart for a larger picture.

This graph shows spending on private residential and non-residential construction, and public spending, since 1993. Note: Nominal dollars, not inflation.

Housing spending (red) is 36% higher than the bubble peak (in nominal terms – not adjusted for inflation).

Non-residential spending (blue) is 19% higher than the bubble-era peak in January 2008 (in nominal dollars).

Public spending on construction is 6% higher than the peak in March 2009.

Construction spending on an annual basisThe second graph shows the annual change in construction spending.

on an annual basis, Spending on private residential construction increased by 15.5%. Non-residential spending increased 1.7% year over year. Public spending rose 0.4% year over year.

This was less than expectations for a 0.2% increase in spending. With that said, construction spending for the past three months combined was revised up slightly.

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