Construction Spending Climbs in August
Construction spending in the U.S. is near levels seen at the beginning of the year. The Census Bureau announced earlier this week that construction spending in August increased 1.4% to a seasonally adjusted annual rate of $1,412.8 billion. This is also 2.5% above the August 2019 data.
"A robust rise in residential more than offset a small decline in the nonresidential category," states a release from Wells Fargo Securities. "Overall, strengthening residential activity is keeping overall construction afloat."
Economists predicted spending would increase 0.8% in Augusts, according to Reuters. Furthermore, this is the best month of August on record, dating back to 2002.
Private construction spending improved nearly 2% from July, while private residential spending was up 3.7% in August and nearly 7% year over year. Nonresidential spending was down 0.3% in August and 4.3% from August 2019.
On the public side, spending was slightly better in August, led by educational and highway construction. Total public construction spending was up 5.5% from last year, as were both residential and nonresidential.
-Michael Miller, managing editor