Construction spending flat in July as nonresidential dip wipes out residential gain

Updated Sep 3, 2016

shutterstock_57985633U.S. construction spending was flat for the month of July at an estimated annual rate of $1.153 trillion, according to preliminary data from the Commerce Department.

An 0.3-percent decrease in nonresidential spending wiped out most of an 0.4-percent increase in residential during the month.

Total construction spending remains up 1.5 percent over the July 2015 mark.

Improvements, which are included in the residential spending figure, accounted for that sector’s overall July increase to $452 billion, as spending on the construction of new single-family homes fell 0.2 percent while spending on new multi-family homes fell 0.6 percent.

Residential spending remains up 1.7 percent over the July 2015 rate.

Nonresidential spending fell to $701 billion and remains up 1.4 percent over the year-ago figure. Top percentage declines in the sector came from educational, down 6.3 percent to $83 billion; conservation and development, down 6.2 percent to $7.5 billion and amusement and recreation, down 2.1 percent to $22 billion.

Top nonresidential percentage gains were office, up 4 percent to $72 billion; manufacturing, up 3.8 percent to $76 billion and public safety, up 1.7 percent to $8 billion.

Total spending from the private sector was up 1 percent to $875 billion while government spending fell 3.1 percent to $278 billion.