US construction spending edges up 0.1 percent in June

Meanwhile, the report also showed a decrease in spending on private construction, which fell by 0.5% to an annual rate of USD766.4 billion.

Read the Census release.

Construction’s June spending edged up just 0.1% from May’s level, to a $1.065-billion annual rate, but posted a strong 12% gain year over year, the Commerce Dept. has reported.

The NAHB-constructed spending index indicates that recent gains have been driven by the steady increase in multifamily construction spending.

U.S. construction spending increased in June by the smallest amount in five months as a big drop in nonresidential building activity offset a third straight increase in home building. May’s nonresidential construction figure was revised upward by 2.6 percent and April’s by 1.4 percent; therefore, it is conceivable that June’s estimate will eventually be revised higher as well. Those measures, which include expanding career and technical education opportunities, making it easier for firms to establish regional training programs and immigration reform, are designed to make it easier to recruit and prepare new construction workers. Private non-residential construction declined across most categories, with the exception of lodging and amusement and recreation. “Had power simply remained unchanged during that time period-it’s down 16.5% largely because of the fall in oil prices-nonresidential construction spending would now stand at its highest level ever”.

Public construction spending grew 1.6 percent to $298.2 billion (SAAR).

The Commerce Department noted that total construction spending in June was up by 12.0 percent compared to the same month a year ago.

• Sewage and waste disposal-related construction spending increased 1.6 percent for the month and has expanded 5.3 percent on a 12-month basis. Construction spending was up 12 per cent compared to June of previous year.

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