Construction spending continues to climb with July’s seasonally adjusted annual rate increasing to $1,083.4 billion, the fifth consecutive month construction spending topped $1 trillion. This is 0.7% higher than June’s revised estimate of $1,075.9 billion, which is up from its initial estimate of $1,064.6 billion. July’s estimate represents a 13.7% increase over the last 12 months. May’s estimate has been revised up again to $1,068.4 billion from $1,063.5 billion. This marks a seven-year high for construction spending. The last time it was this high was back in May 2008 when it hit $1,091.6 billion.
Construction spending for January through July 2015 was at $583.2 billion. This is 9.3% higher than the $533.7 billion spent during the seven months of 2014.
The annual rate for private construction spending increased to $787.8 billion in July. June’s private construction spending was revised up to $777.4 billion over last month’s initial estimate of $766.4 billion and May’s estimate was revised up to $776.5 billion over last month’s report of $770 billion Private nonresidential construction increased to $407 billion in July, up from June’s revised figure of $400.8 billion.
The seasonally adjusted annual rate for public construction spending decreased 1.0% from June’s revised figure of $298.5 billion to $295.6 billion in July. May’s construction spending was revised down from $293.5 billion to 292 billion. This is the third time this year that public construction spending has decreased from the previous month, it happened consecutively in January and February.
Private construction spending has seen steady increases for 12 consecutive months and helped drive construction spending over $1 trillion for the past several months. This momentum should carry through to the end of the year assuming that the less than stellar job increases in construction doesn’t start to have a negative effect on spending going forward.