U.S. Construction Spending Up Marginally in September for the Second Straight Month
Summary
- September construction spending +0.1% m/m (+4.6% y/y); August and July revised up.
- Residential private construction +0.2% m/m, led by a 0.4% rebound in single-family building.
- Nonresidential private construction -0.1% m/m, down for the second month in three.
- Public sector construction +0.5% m/m, reflecting m/m rises in both residential & nonresidential public buildings.
The value of construction put in place edged up 0.1% m/m in September after an upwardly revised 0.1% increase in August (-0.1% initially) and a 0.04% downtick in July (-0.5% previously), according to the U.S. Census Bureau. The September reading matched the forecast in the Action Economics Forecast Survey. A 1.1% drop in June followed a string of m/m gains during the May 2024 to November 2022 period. The year-on-year rate decelerated to 4.6% in September, the lowest since May 2023, from 4.8% in August. The latest y/y figure was lower than 7.4% in September 2023, having remained below its recent high of 9.8% in January 2024 and a peak of 18.6% in April 2022.
Private construction was virtually unchanged (3.8% y/y) in September following an upwardly revised 0.2% rise in August (-0.2% initially) and an upwardly revised 0.5% decline in July (-0.7% previously). Residential private construction increased 0.2% (4.1% y/y) in September following a 0.3% gain in August (-0.3% initially) and two successive m/m drops. Single-family building rose 0.4% (0.9% y/y), the first m/m rise since February, after a 1.3% August decrease; it was 45.8% of the residential private construction. Multi-family building, however, dipped 0.1% (-8.1% y/y), the 10th straight m/m decline, on top of a 0.3% August decrease; it was 13.9% of the residential private construction. Home improvement building was essentially unchanged (+13.5% y/y) in September following a 2.3% advance in August; it was 40.2% of the residential private construction.
Nonresidential private construction eased 0.1% (+3.5% y/y) in September, the second m/m decline in three months, following a 0.04% uptick in August. The September easing reflected m/m drops in the following nonresidential private constructions. These included health care (-1.1%; -0.4% y/y), communication (-0.3%; -0.9% y/y), office (-0.3%; +0.1% y/y), manufacturing (-0.2%; +20.2% y/y), transportation (-0.1%; +12.5% y/y), and utilities (-0.1%; +5.8% y/y). In contrast, the following private constructions rose m/m in September: religious (2.5%; -1.3% y/y), educational (0.6%; 3.1% y/y), commercial (0.2%; -14.8% y/y), and lodging (0.1%; -8.0% y/y). Meanwhile, amusement & recreation private construction was essentially unchanged (-1.5% y/y) in September following two consecutive m/m declines.
The value of public construction rose 0.5% (7.0% y/y) in September after a 0.04% uptick in August (+0.3% initially) and a 1.4% rebound in July (+0.5% previously), reflecting gains of 2.3% (8.3% y/y) in residential public construction and 0.4% (7.0% y/y) in nonresidential public construction. The September rise reflected m/m increases in the following nonresidential public constructions. These included health care (1.4%; 6.2% y/y), transportation (1.3%; 4.9% y/y), office (1.0%; 10.2% y/y), commercial (0.7%; 33.2% y/y), sewage & waste disposal (0.5%; 5.2% y/y), water supply (0.4%; 18.2% y/y), and educational (0.3%; 3.9% y/y). Notably, spending on highways & streets, which made up 28.5% of public construction spending, rose 0.5% (1.7% y/y) in September following a 0.8% rise in August and four straight m/m decreases. To the downside, the following public constructions fell m/m in September: conservation & development (-1.4%; -4.2% y/y), utilities (-0.7%; +9.6% y/y), public safety (-0.3%; +33.7% y/y), and amusement & recreation (-0.2%; +25.2% y/y).
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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