August 2015 Construction Spending

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Overall construction spending during August 2015 was estimated at a seasonally adjusted annual rate (SAAR) of $1,086.2 billion, 0.7% (±1.5%)* above the revised July estimate of $1,079.1 billion; expectations were for +0.7%. The August figure is 13.7% (±2.1%) above the year-earlier estimate of $955.0 billion.

Year to date through August, construction spending amounted to $683.4 billion, 9.8% (±1.3%) above the $622.4 billion for the same months in 2014.

PRIVATE CONSTRUCTION

Spending on private construction was at a SAAR of $788.0 billion, 0.7% (±0.7%)* above the revised July estimate of $782.3 billion. Residential construction was at a SAAR of $383.3 billion in August, 1.3% (±1.3%)* above the revised July estimate of $378.5 billion. Nonresidential construction was at a SAAR of $404.7 billion in August, 0.2% (±0.7%)* above the revised July estimate of $403.8 billion.

PUBLIC CONSTRUCTION

In August, the estimated SAAR of public construction spending was $298.2 billion, 0.5% (±2.6%)* above the revised July estimate of $296.8 billion. Educational construction was at a SAAR of $67.4 billion, 0.2% (±4.1%)* below the revised July estimate of $67.5 billion. Highway construction was at a seasonally adjusted annual rate of $90.4 billion, 0.4% (±6.4%)* below the revised July estimate of $90.7 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 August’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.