The dollar value of new construction activity on residential, non-residential, and public projects. Data are available in nominal and real (inflation-adjusted) dollars. Why Investors Care
| Released on 8/1/08 For Jun 2008 | ||||||||||||
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Highlights
Construction spending in June resumed a downtrend on a further drop in housing construction. Construction outlays fell 0.4 percent in June, following no change in May. The June decline matched market expectations. The June decrease was led by a 1.8 percent decrease in private residential outlays with public outlays also dipping 0.2 percent. However, private nonresidential spending continued to be a source of strength with a 0.8 percent boost for June.
Not surprisingly, weakness in the private residential component was led by a 3.7 percent decline in single-family outlays in June but multifamily spending also dipped by 0.4 percent for the latest month. The private nonresidential component was led by gains in power and in manufacturing categories - up 4.1 percent and 1.5 percent, respectively.
On a year-on-year basis, overall construction outlays nudged up to down 5.9 percent in June from down 6.0 percent in May.
Today's construction spending numbers are closely in line with expectations. The bloated housing supply continues to weigh on new construction while long-term nonresidential construction contracts are still having positive lagged effects in that sector. Public outlays, however, may be starting to soften due to weak revenues at the state government level.
Construction spending fell in May but there are signs of strength outside of housing. Construction outlays fell 0.4 percent, following a 0.1 percent decrease in April. The May drop was led by a 1.6 percent drop in private residential outlays. However, private nonresidential spending rose 0.2 percent while public outlays advanced 0.4 percent in the latest month. While housing is still on a downtrend, the nonresidential and public sectors are helping many construction workers to hang onto their jobs and also are still adding to economic growth.
Construction spending Consensus Forecast for June 08: -0.4 percent
Range: -1.0 to -0.1 percent
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Over the last year, a decline in residential outlays has pulled down year-on-year growth for overall construction outlays. Nonresidential and public outlays are positive with nonresidential actually strong. |
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