July 2019 Construction Spending

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Following data revisions (not-seasonally adjusted back to January 2013, and seasonally adjusted back to January 2008), construction spending during July 2019 was estimated at a seasonally adjusted annual rate (SAAR) of $1,288.8 billion, 0.1% (±1.3%)* above the revised June estimate of $1,288.1 billion (originally $1,287.0 billion); consensus expectations were for +0.3%. The July figure is 2.7% (±1.6%) below the July 2018 SAAR of $1,324.8 billion; the not-seasonally adjusted YoY change (shown in the table below) was -2.3%.

During the first seven months of this year, construction spending amounted to $733.8 billion, 2.1% (±1.2%) below the $749.9 billion for the same period in 2018.

* 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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Private Construction

Spending on private construction was at a SAAR of $963.1 billion, 0.1% (±0.7%)* below the revised June estimate of $963.7 billion (originally $962.9 billion):
- Residential: $506.7 billion, +0.6% (±1.3%)*;
- Nonresidential: $456.4 billion, -0.8% (±0.7%).

Public Construction

Public construction spending was $325.7 billion, 0.4% (±2.5%)* above the revised June estimate of $324.3 billion (originally $336.4 billion):
- Educational: $73.3 billion, +1.6% (±2.8%)*;
- Highway: $97.0 billion, -2.7% (±6.4%)*. 

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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.