U.S. construction spending increased in June and the prior month’s spending estimate was revised higher, data from the Commerce Department showed Tuesday.
The Commerce Department said construction spending rose 0.5 percent compared with the previous month. Data for May was revised to show spending surged 1.1 percent, up from the previous estimate of 0.9 percent.
Taking into account the revision to the previous month, the increase was largely in line with forecasts that had spending increasing 0.6 percent from the unrevised figure.
Compared with a year ago, overall construction spending is up 3.5 percent. This was the sixth straight month of increased construction spending.
Private sector construction spending rose 0.5 percent in June to a seasonally adjusted annual rate of $1.52 trillion. Compared with a year ago, this is a one percent increase.
Government spending on construction has surged 13.6 percent over the past year to an annual rate of $421.5 billion, the highest level on record. Compared with the previous month, government spending increased 0.3 percent. Spending on highways and streets, the largest category of public construction spending, ticked down 0.1 percent in June but is up 20.4 percent from a year ago. Spending is up on a year-over-year basis in every category of government spending.
There were signs of a housing recovery in the June report. Spending on single-family housing projects jumped 2.1 percent in June. Compared with a year ago, however, spending on single-family home construction is down 21.5 percent.
Construction spending on multifamily homes rose 1.5 percent compared with May and is up 21.8 percent for the year.
The housing market is the most directly exposed part of the economy to the Federal Reserve’s rate hikes because home purchases are largely paid for with mortgages. But a shortage of single-family homes available for sale has led to an unexpected revival of home building.
The boom in factory construction continued in June, with spending rising 0.3 percent compared with a month earlier. Compared with a year ago, private sector construction spending on manufacturing plants is up 80.3 percent.
In June, however, rising spending on factories, commercial projects, and hotels was offset by a decline in spending on healthcare and power plants. Private nonresidential construction was flat for the month.
https://www.breitbart.com/economy/2023/08/01/construction-spending-rises-in-june-as-government-projects-hit-record-high/
