A surge in gov’t spending kept construction spending in the green by 0.1%. Private spending is down and trending lower.
Construction spending reports are volatile and heavily revised, but given the weakness in most housing reports, the Monthly Construction Report for August rings true.
Total Construction
Construction spending during August 2018 was estimated at a seasonally adjusted annual rate of $1,318.5 billion, 0.1 percent above the revised July estimate of $1,317.4 billion.
Private Construction
Spending on private construction was at a seasonally adjusted annual rate of $1,001.7 billion, 0.5 percent below the revised July estimate of $1,006.9 billion. Residential construction was at a seasonally adjusted annual rate of $548.9 billion in August, 0.7 percent below the revised July estimate of $553.0 billion. Nonresidential construction was at a seasonally adjusted annual rate of $452.9 billion in August, 0.2 percent below the revised July estimate of $453.9 billion.
Public Construction
Public construction spending was $316.7 billion, 2.0 percent above the revised July estimate of $310.5 billion. Educational construction was at a seasonally adjusted annual rate of $72.3 billion, 1.0 percent above the revised July estimate of $71.7 billion. Highway construction was at a seasonally adjusted annual rate of $99.0 billion, 1.7 percent above the revised July estimate of $97.3 billion.
Select Seasonally-Adjusted Spending Numbers
Year-Over-Year Private Residential Construction
Year-Over-Year Private Construction
Commercial projects are larger and take longer. Once started they complete.
Businesses spending is planned years ahead so the cycles are different.
The chart suggests commercial lags residential heading into and out of recessions.
