Construction Spending Fell to Nine-Month Low in July

Construction spending slowed in July for the third time in four months, landing at a seasonally adjusted annual level (SAAL) of $1,211.5 billion, according to the Census Bureau. June’s spending estimate was revised down to a rate of $1,219.3 billion. July’s figure is 1.8% greater than the July 2016 estimate of $1,189.8 billion.

Total private construction was $945.5 billion SAAL, a 0.4% decrease from the revised June estimate of $949.4 billion. Total private construction is 4.1% higher than the July 2016 figure.

Private residential construction was $517.5 billion SAAL, 0.8% above June’s upwardly revised rate. July’s figure is 11.6% greater than its July 2016 estimate. Private residential construction increased in each of the past three months.

Private nonresidential construction was $428.0 billion, 1.9% below June’s downwardly revised estimate. Declines in commercial construction led the way, falling 4.7% over the month. July’s estimate is 1.1% greater than the July 2016 figure.

Public construction decreased 1.4% to $266.0 billion SAAL. July’s figure is 5.6% below the July 2016 estimate.

Read the Census release.

About Stephen Newton

Stephen Newton is an economic research associate at ABA.
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