US construction spending up just 0.1 percent in June

• Highway and street-related construction spending expanded 1.3 percent in June and is up 14.8 percent compared to the same time a year ago.

Private residential construction rose to $371.6 billion (SAAR), 0.4 percent above May’s revised estimate as construction of multi-family homes increased for the month. The Commerce Department said construction outlays increased to an annual rate of $1.06 billion in June, adjusted for seasonal variations. Association officials cautioned, however, that those spending gains could be at risk unless all levels of government strengthen programs to develop the construction workforce.

“Today’s release represents the largest year-over-year growth during a calendar year’s first six months since the Census Bureau began tracking construction spending in 2002 and serves as further proof of the recovery for nonresidential construction”, said Basu.

Construction economists focused on the 12-month comparison. Economists polled by MarketWatch had expected a 0.8% increase.

Among large nonresidential sectors, power declined 0.9% compared with May’s total, to $88.5 billion, and slumped 16.5% from its year-earlier level.

During the first six months of 2015, construction spending reached $482.7 billion, 8% above the $446.8 billion for the same period in 2014.

In June, the estimated seasonally adjusted annual rate of public construction spending was $298.2 billion, 1.6% (±2.6%) above the revised May estimate of $293.5 billion.

Office buildings were down 1.1% from May, to $55.4 billion, but surged 24.4% year over year.

But June’s total is 12% higher than the estimate for June 2014, when (seasonally adjusted, annual) construction spending stood at $950.3 billion.

Educational projects dipped 0.2% from May, to $83.8 billion, and increased a modest 2.1% year over year.

Religious spending fell 6.2 % for the month, but is up 5 % from the same time past year.