U.S. Construction Spending Rises for the Sixth Straight Month in June
Summary
- Total June construction +0.5% (3.5% y/y), marginally less than expected.
- Residential private construction increases 0.9% (-10.4% y/y), led by m/m construction gains in single-family and multi-family.
- Nonresidential private construction is virtually unchanged (+20.9% y/y) after a May drop.
- Public sector construction grows 0.3% (13.6% y/y), up for the 10th consecutive month, led by a 0.3% rise (13.8% y/y) in nonresidential public construction.
The value of construction put in place rose 0.5% m/m in June after an upwardly revised 1.1% gain in May (+0.9% initially) and a downwardly revised 0.3% increase in April (+0.4% previously), according to the U.S. Census Bureau. The June rise was the sixth consecutive monthly gain. The year-on-year rate rose to 3.5% in June from 2.6% in May; nevertheless, remaining below a 16.5% y/y peak in April 2022. A 0.6% m/m June increase had been expected in the Action Economics Forecast Survey.
Private construction grew 0.5% (1.0% y/y) in June after an upwardly revised 1.3% rise in May (+1.1% initially) and a downwardly revised 0.1% easing in April (+0.4% previously). The June reading was the third m/m increase in four months. Residential private construction rose 0.9% (-10.4% y/y) in June after a 2.9% rebound in May and three successive m/m drops. Single-family building grew 2.1% (-21.5% y/y) following a 1.6% May gain and 12 straight m/m declines; it was 44.2% of the residential private construction. Multi-family building rose 1.5% (21.8% y/y), the 11th consecutive m/m rise, on top of a 0.5% May increase; it was 15.4% of the residential private construction. Home improvement building, however, fell 0.6% (-5.4% y/y), the second m/m fall in three months, after a 5.2% May gain; it was 40.4% of the residential private construction.
Nonresidential private construction dipped 0.03% (+20.9% y/y) in June following a 0.8% decline in May and 11 straight m/m advances. The June m/m result reflected monthly drops of 1.6% (+2.0% y/y) in utilities private construction, 1.0% (+10.4% y/y) in health care private construction, and 0.4% (+0.1% y/y) in communication construction. To the upside, the following nonresidential private constructions posted their m/m increases in June: religious (3.7%; 1.3% y/y), educational (1.0%; 17.9% y/y), office (0.9%; 8.0% y/y), amusement & recreation (0.9%; -5.8% y/y), lodging (0.5%; 22.0% y/y), transportation (0.5%; 15.2% y/y), manufacturing (0.3%; 80.7% y/y), and commercial (0.1%; 3.7% y/y).
The value of public construction rose 0.3% (13.6% y/y) in June, the 10th successive m/m rise, after an upwardly revised 0.7% increase in May (+0.1% initially), reflecting a 0.2% decline (+6.9% y/y) in residential public construction and a 0.3% increase (13.8% y/y) in nonresidential public construction. The following nonresidential public constructions registered their m/m gains in June: conservation & development (2.2%; 30.1% y/y), sewage & waste disposal (1.6%; 23.3% y/y), amusement & recreation (1.4%; 19.3% y/y), utilities (1.0%; 36.7% y/y), water supply (1.0%; 5.4% y/y), and transportation (0.3%; 6.4% y/y). In contrast, the following nonresidential public constructions fell m/m in June: commercial (-0.8%; +10.1% y/y), health care (-0.5%; +12.0% y/y), office (-0.3%; +7.2% y/y), educational (-0.1%; +5.6% y/y), and public safety (-0.1%; +7.0% y/y). Notably, spending on highways & streets, which makes up 30.5% of public construction spending, slipped 0.1% (+20.4% y/y) after rises of 0.1% in May and 3.4% in April.
The construction figures can be found in Haver's USECON database. The expectations figure is from the Action Economics Forecast Survey in AS1REPNA.
Winnie Tapasanun
AuthorMore in Author Profile »Winnie Tapasanun has been working for Haver Analytics since 2013. She has 20+ years of working in the financial services industry. As Vice President and Economic Analyst at Globicus International, Inc., a New York-based company specializing in macroeconomics and financial markets, Winnie oversaw the company’s business operations, managed financial and economic data, and wrote daily reports on macroeconomics and financial markets. Prior to working at Globicus, she was Investment Promotion Officer at the New York Office of the Thailand Board of Investment (BOI) where she wrote monthly reports on the U.S. economic outlook, wrote reports on the outlook of key U.S. industries, and assisted investors on doing business and investment in Thailand. Prior to joining the BOI, she was Adjunct Professor teaching International Political Economy/International Relations at the City College of New York. Prior to her teaching experience at the CCNY, Winnie successfully completed internships at the United Nations. Winnie holds an MA Degree from Long Island University, New York. She also did graduate studies at Columbia University in the City of New York and doctoral requirements at the Graduate Center of the City University of New York. Her areas of specialization are international political economy, macroeconomics, financial markets, political economy, international relations, and business development/business strategy. Her regional specialization includes, but not limited to, Southeast Asia and East Asia. Winnie is bilingual in English and Thai with competency in French. She loves to travel (~30 countries) to better understand each country’s unique economy, fascinating culture and people as well as the global economy as a whole.
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