Construction spending increased slightly in July as increases in residential were wiped out by a decline in nonresidential.
Total spending rose 0.1 percent in July to a seasonally adjusted annual rate of $1.315 trillion, an increase of 5.8 percent over the July 2017 rate, according to Commerce Department data.
Spending on private home construction, which includes improvements and renovations, rose 0.6 percent during July to a rate of $560 billion and is now 6.7 percent above the year-ago rate. Spending on single-family homes fell 0.3 percent to a rate of $287 billion, but remains up 6 percent over the July 2017 rate. Multi-family home spending fell 0.4 percent to a rate of $59 billion and is up 1.1 percent over the year-ago rate.
Total nonresidential spending fell 0.3 percent in July to a rate of $749 billion, but remains 5.3 percent above the year-ago rate. Top percentage declines were commercial projects, down 3.3 percent to $90 billion; water supply, down 2.3 percent to $15 billion; and health care, down 1 percent to $41.5 billion. Top percentage increases were conservation and development, up 8.2 percent to $9 billion; educational, up 1 percent to $90 billion; and religious, up 0.3 percent to $3 billion.
Total spending on private projects fell 0.1 percent during July to a rate of $1 trillion. Private spending remains 5.1 percent above the July 2017 rate.
Government project spending rose 0.7 percent in July to a rate of $298 billion and is up 8.3 percent over the year-ago rate.