June 2015 Construction Spending

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Overall construction spending in the United States during June 2015 was estimated at a seasonally adjusted annual rate of $1,064.6 billion, 0.1% (±1.5%)* above the revised May estimate of $1,063.5 billion. The markets had been expecting a 0.6% increase. The June figure is 12.0% (±2.1%) above the June 2014 estimate of $950.3 billion.

During the first 6 months of this year, construction spending amounted to $482.7 billion, 8.0% (±1.5%) above the $446.8 billion for the same period in 2014.

Spending on private construction was $766.4 billion in June, 0.5% (±0.8%)* below the revised May estimate of $770.0 billion. Residential construction was $371.6 billion, 0.4% (±1.3%)* above the revised May estimate of $370.0 billion. Nonresidential construction was $394.8 billion, 1.3% (±0.8%) below the revised May estimate of $400.0 billion.

Public construction spending was $298.2 billion, 1.6% (±2.6%)* above the revised May estimate of $293.5 billion. Educational construction was $67.2 billion, 0.2% (±5.1%)* above the revised May estimate of $67.1 billion. Highway construction was $90.9 billion, 1.2% (±6.3%)* above the revised May estimate of $89.8 billion.

* 90% confidence interval includes zero. The U.S. Census Bureau does not have sufficient statistical evidence to conclude that the actual change is different from zero. 

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Click here for a discussion of June’s new residential permits, starts and completions. Click here for a discussion of new and existing home sales, inventories and prices.

The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.