June construction spending down 1.1%

in Estimated risk per 08/01/2022 12:39:00 PM

From the Census Bureau informed that overall construction costs have increased:

Construction spending in June 2022 was estimated at a seasonally adjusted annualized rate of $1,762.3 billion. 1.1 percent pledged the revised May estimate was $1,781.9 billion. The June figure is 8.3% higher than the June 2021 estimate of $1,628.0 billion.
added accent

Reduced both private and public spending:

Private construction spending was seasonally adjusted at $1,416.4 billion year-on-year, down 1.3% from May’s revised estimate of $1,434.4 billion. …

In June, the projected annual level of spending on state building was seasonally adjusted at $345.9 billion, down 0.5% from May’s revised estimate of $347.5 billion.

Construction costs Click on the graph to enlarge the image.

This graph shows private spending on residential and non-residential construction, as well as government spending since 1993. Note: nominal dollars, not adjusted for inflation.

Housing (red) spending is 36% above the peak of the bubble (in nominal terms, not adjusted for inflation).

Non-residential spending (blue) is 19% above the peak of the bubble era in January 2008 (in nominal dollars).

State building spending is 6% above its March 2009 peak.

Annual construction costsThe second graph shows the year-on-year change in construction spending.

On an annualized basis, spending on private housing construction increased by 15.5%. Spending on non-residential premises increased by 1.7% compared to last year. Government spending rose 0.4% year on year.

This was below consensus for a 0.2% increase in spending; however, total construction spending over the previous three months has been slightly revised upwards.