Haver Analytics
Haver Analytics
| Sep 01 2023

U.S. Construction Spending Firms in July

  • Residential building strengthens for third straight month.
  • Nonresidential building edges higher.
  • Public sector building declines.

The value of construction put in place strengthened 0.7% (5.5% y/y) during July following a 0.6% June gain, revised from 0.5%, according to the U.S. Census Bureau. The y/y increase improved to 5.5% from its 1.3% April low. A 0.5% increase had been expected in the Action Economics Forecast Survey.

Private construction rose 1.0% (4.0% y/y) in July after a 0.6% June gain. Residential private construction strengthened 1.4% (-5.5% y/y), the third straight month of firm increase. Single-family building rose 2.8% (-15.2% y/y) following two months of 1.9% gain. Multi-family building improved 0.2% (24.6% y/y) after rising 2.0% in June. Home improvement spending increased 0.3% (-2.0% y/y) following a 0.9% increase.

Private nonresidential construction rose 0.5% (19.8% y/y) in July and reversed June’s decline. Transportation building increased 1.1% (14.0% y/y) and communication building rose 1.0% (-0.6% y/y). The gain also reflected a 1.1% surge (71.4% y/y) in manufacturing construction but education construction held steady (+17.7% y/y). Lodging construction fell 0.7% (+20.9% y/y) while office construction rose 0.3% (9.2% y/y). Health care building weakened 1.1% (+11.1% y/y) though amusement construction improved 0.1% (2.8% y/y). Power construction rose 0.1% (3.2% y/y).

The value of public construction fell 0.4% (+11.4% y/y) in July following a 0.6% June gain. Residential public construction rose 2.6% (2.3% y/y) while nonresidential public construction fell 0.4% (+11.6% y/y). Commercial construction declined 2.6% (-0.6% y/y) and water supply building rose 0.7% (9.7% y/y). Educational building gained 0.1% (8.6% y/y) while conservation & development fell 4.2% (+16.0% y/y). Transportation construction declined 1.9% (+6.1% y/y) and highway & street building eased 0.6% (+12.1% y/y). Water supply construction rose 0.7% (9.7% y/y) but waste disposal building weakened 1.2% (+18.0% 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.

  • Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio.   Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984.   He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C.   In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists.   Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.

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