Updated: 01-Aug-22 10:37 ET
| June Construction Spending |
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| Updated: 01-Aug-22 10:37 ET |
Highlights
- Total construction spending declined 1.1% month-over-month in June (Briefing.com consensus 0.2%) following an upwardly revised 0.1% increase (from -0.1%) in May.
- Total private construction was down 1.3% month-over-month while total public construction decreased 0.5%.
- On a year-over-year basis, total construction spending was up 8.3%.
Key Factors
- Total residential spending fell 1.6% month-over-month and was up 15.4% year-over-year, while total nonresidential spending decreased 0.5% and was up just 1.2% year-over-year.
- The decrease in private construction spending was paced by a 1.6% decline in residential spending. Nonresidential private spending decreased 0.5%, led by a 1.8% decline in power spending and a 0.6% decline in commercial spending.
- The decrease in public construction was driven by a 0.5% decrease in nonresidential spending, which was led by a 2.7% decline in highway and street spending. Public residential construction spending increased 0.5%.
Big Picture
- The key takeaway from the report is the downturn seen in residential spending, which featured a 3.1% decline in new single family construction. The latter is consistent with weak homebuilder sentiment, which has deteriorated on the back of higher mortgage rates crimping affordability for prospective buyers.
| Category | JUN | MAY | APR | MAR | FEB |
| Nominal (Current) Dollars | |||||
| Total Construction | -1.1% | 0.1% | 0.7% | 0.9% | 1.5% |
| Private | -1.3% | 0.2% | 0.7% | 1.0% | 1.8% |
| Residential | -1.6% | 0.8% | 1.2% | 1.8% | 2.4% |
| Nonresidential | -0.5% | -0.9% | -0.2% | -0.5% | 0.7% |
| Public | -0.5% | -0.7% | 0.7% | 0.3% | 0.5% |
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