July 2015 Construction Spending

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Overall construction spending in the United States during July 2015 was estimated at a seasonally adjusted annual rate (SAAR) of $1,083.4 billion, 0.7% (±1.5%*) above the revised June estimate of $1,075.9 billion; expectations were for an 0.8% increase. The July figure is 13.9% (±2.0%) above the July 2014 estimate of $952.5 billion.

During the first seven months of this year, construction spending amounted to $583.2 billion, 9.3% (±1.5%) above the $533.7 billion for the same period in 2014.

PRIVATE CONSTRUCTION

Spending on private construction was at a SAAR of $787.8 billion, 1.3% (±1.0%) above the revised June estimate of $777.4 billion. Residential construction: $380.8 billion, 1.1% (±1.3%*) above June’s $376.6 billion. Nonresidential construction: $407.0 billion, 1.5% (±1.0%) above June’s $400.8 billion.

PUBLIC CONSTRUCTION

Public construction spending was $295.6 billion SAAR, -1.0% (±2.6%*). Educational construction: $66.4 billion, -3.0% (±3.5%*). Highway construction: $90.3 billion, -0.2% (±6.6%*).

* 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 July’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.