Latest News

Construction Spending unchanged in August

0
Panorama of a city business district with office buildings and skyscrapers and superimposed data, charts and diagrams related to stock market, currency exchange and global finance. Blue line graphs with numbers and exchange rates, candlestick charts and financial figures fill the image with a glowing light. Sunset light.

From the Census Bureau reported that overall construction spending was “virtually unchanged”:
Construction spending during August 2021 was estimated at a seasonally adjusted annual rate of $1,584.1 billion, virtually unchanged from the revised July estimate of $1,584.0 billion. The August figure is 8.9 percent above the August 2020 estimate of $1,455.0 billion. During the first eight months of this year, construction spending amounted to $1,034.5 billion, 7.0 percent above the $966.7 billion for the same period in 2020.
emphasis added
Private spending decreased and public spending increased:
Spending on private construction was at a seasonally adjusted annual rate of $1,242.2 billion, 0.1 percent below the revised July estimate of $1,243.7 billion. …

In August, the estimated seasonally adjusted annual rate of public construction spending was $341.9 billion, 0.5 percent above the revised July estimate of $340.3 billion.
Click on graph for larger image.

This graph shows private residential and nonresidential construction spending, and public spending, since 1993. Note: nominal dollars, not inflation adjusted.

Residential spending is 16% above the bubble peak (in nominal terms – not adjusted for inflation).

Non-residential spending is 10% above the bubble era peak in January 2008 (nominal dollars), but has been weak recently.

Public construction spending is 9% above the peak in March 2009, but weak recently.

The second graph shows the year-over-year change in construction spending.

On a year-over-year basis, private residential construction spending is up 24.3%. Non-residential spending is down 2.3% year-over-year. Public spending is unchanged year-over-year.

Construction was considered an essential service during the early months of the pandemic in most areas, and did not decline sharply like many other sectors. However, some sectors of non-residential have been under pressure. For example, lodging is down 30.7% YoY, multi-retail down 2.0% YoY (from very low levels), and office down 4.2% YoY.

This was below consensus expectations of a 0.3% increase in spending, however construction spending for the previous two months was revised up slightly.

Personal Income increased 0.2% in August, Spending increased 0.8%

Previous article

Q3 GDP Forecasts: More Downgrades

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News