Nonresidential sends construction spending down 1.3% in June

Decreases in spending on apartment homes and nonresidential projects were the difference in June’s construction spending report, as total U.S. spending fell 1.3 percent to a seasonally adjusted annual rate of $1.205 trillion.

Despite the monthly drop, the annual rate remains 1.6 percent above the June 2016 rate.

Total residential spending fell 0.3 percent in June to a rate of $508.8 billion. Private homebuilders spent 0.3 percent more on the construction of new single-family homes, bringing that rate up to $261.3 billion, a 9-percent improvement over the year-ago figure.

However, homebuilders spent 3 percent less on multi-family homes at a rate of $60.7 billion. The rate remains 0.6 percent above the June 2016 figure.

Nonresidential spending fell 2 percent to a rate of $696.9 billion and has fallen 3.1 percent lower than the June 2016 rate.

The top percentage decreases in nonresidential were conservation and development, down 7.3 percent to $6.5 billion; public safety, down 6.5 percent to $7.6 billion; and highway and street, down 6.4 percent $82.7 billion. The top (and only) percentage gains for the month were communication, up 2.8 percent to $22.3 billion and office, up 1.9 percent to $72.9 billion.

New from Equipment World

Get fast, free estimate values for your used construction equipment

Access one of the industry's largest resale and auction databases with the new Construction Equipment Valuation Calculator

Get an estimate

Powered by

Total construction spending from the private sector fell 0.1 percent to $940.7 billion but remains up 5.3 percent over June 2016. Government spending fell 5.4 percent during June to $265 billion and is down 9.5 percent over its year-ago figure.