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
