Spending on the construction of homes rose 4 percent year-over-year in August according to the latest Monthly Construction Spending report from the U.S. Census Bureau. However, the reported noted that on a month-over-month basis the spending on residential construction fell slightly and the overall construction spending was mostly led by increased spending on public construction.
The report provides monthly estimates of the total dollar value of construction work done in the U.S. According to the Census Bureau, this survey covers construction work done each month on new structures or improvements to existing structures for private and public sectors. Data estimates include the cost of labor and materials, cost of architectural and engineering work, overhead costs, interest and taxes paid during construction, and contractor’s profits. The report indicated that overall construction spending in August was at $1,318.5 billion, up from $1,317.4 billion in July, after revisions.
Year over year, the report revealed, that overall construction spending rose by 6.5 percent, up from the August 2017 estimate of $1,237.5 billion. The report also notes that construction spending increased by $862 billion in the first eight months of the year, 5.3 percent more growth than the same period in 2017.
While construction as a whole increased, private construction saw a decrease in spending in August. The Census Bureau report found that spending was 0.5 percent below the revised July estimate at $1,006.9 billion, down to $1,001.7 billion. Residential construction was at a seasonally adjusted annual rate of $560.1 billion in July, 0.6 percent above the revised June estimate of $556.7 billion. Residential construction fell by 0.7 percent to $548.9 billion, below the revised July estimate of $553 billion.
In July in private construction, the Census Bureau found that spending was 0.1 percent below the June estimate, but unlike in August, residential construction went up. Residential construction was at a seasonally adjusted annual rate of $560.1 billion in July, 0.6 percent above the revised June estimate of $556.7 billion.
Most of the growth in construction spending was from public construction, such as educational and highway construction, Educational construction saw a 2.0 percent increase in August to $316.7 billion, up from the revised July estimate of $310.5 billion.
Find the complete report here.