Construction Spending Rebounded 0.5% in August

Construction spending grew in August after two consecutive monthly declines, landing at a seasonally adjusted annual level (SAAL) of $1,218.3 billion, according to the Census Bureau. July’s spending estimate was revised up to a rate of $1,212.3 billion. August’s figure is 2.5% greater than the August 2016 estimate of $1,189.1 billion.

Total private construction was $954.8 billion SAAL, a 0.4% increase from the revised July estimate of $950.5 billion. Total private construction is 4.7% higher than the August 2016 figure.

Private residential construction was $520.9 billion SAAL, 0.4% above July’s upwardly revised rate. August’s figure is 11.6% greater than its August 2016 estimate. Private residential construction increased in each of the past four months.

Private nonresidential construction was $433.9 billion, 0.5% below July’s upwardly revised estimate. August’s estimate is 2.5% less than the August 2016 figure.

Public construction increased 0.7% to $263.5 billion SAAL. August’s figure is 5.1% below the August 2016 estimate.

Read the Census release.

About Stephen Newton

Stephen Newton is an economic research associate at ABA.
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