Economy

Construction Spending Declined in June, Missing Forecast

New residential construction, hew homes, housing starts, building permits, depicted on blueprints. (Photo: AdobeStock)

Total construction spending was estimated at a seasonally adjusted annual rate of $1,287.0 billion, down 1.3% (±1.2%). The month of May was revised higher from -0.8% to -0.5%, or $1,303.4 billion.

With the June decline, construction spending is 2.1% (±1.6%) below the June 2018 estimate of $1,314.8 billion. During the first six months of this year, construction spending was $615.8 billion, or 0.5% (±1.2%) below the $619.0 billion over the same period one year prior.

Indicator	Prior	Revised	Consensus Forecast	Forecast Range	Actual
Construction Spending – M/M ∆	-0.8%	-0.5%	0.3%	-0.5% to 1.0%	-1.3%
Construction Spending – Y/Y ∆	-2.3%				-2.1%

Spending on private construction declined to a seasonally adjusted annual rate of $962.9 billion, down 0.4% (±0.8%) from $967.0 billion.

Residential construction came in at a seasonally adjusted annual rate of $507.2 billion in June, down 0.5% (±1.3%) from $509.7 billion. Nonresidential construction was at a seasonally adjusted annual rate of $455.7 billion, down 0.3% (±0.8%) from $457.3 billion.

The estimated seasonally adjusted annual rate of public construction spending was $324.1 billion, down 3.7% (±2.0%) from $336.4 billion. Educational construction was estimated at a seasonally adjusted annual rate of $73.0 billion, down 6.8% (±2.0%) from $78.3 billion.

Highway construction was at a seasonally adjusted annual rate of $101.9 billion, down 6.4% (±5.4%) from $108.9 billion.

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PPD Business Staff

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.