The seasonally adjusted annual rate of construction spending increased to $1,064.6 billion in June, marking the fourth consecutive month construction spending topped $1 trillion. This is a 12% increase over the June 2014 figure of $950.3 billion. May’s initial estimate has been revised up from $1,035.8 billion to $1,063.5 billion and April’s figure has been revised up again from $1,027.0 billion to $1,044.6 billion.
Construction spending for the first half of the 2015 was at $482.7 billion. This is 8.0 percent higher than the $446.8 billion spent during the first half of 2014.
The annual rate for private construction spending dropped slightly from $770.0 billion in May to 766.4 billion in June 2015. Private nonresidential construction spending was at $394.8 billion in June, down from May’s revised figure of $400.0 billion.
The annual rate for public construction spending rose from May’s revised figure of $293.5 billion to $298.2 billion for June. The two largest contributors to public construction spending came from educational construction at $67.2 billion and highway construction at $90.9 billion. These two sectors accounted for over half of all public construction spending.
The first half of 2015 is behind us and the annual rate of construction spending has been above $1 trillion for four of the first six months. We’ve seen seven consecutive months of increased spending going back to December 2014. Despite Congress not passing a long-term spending bill for highway and surface transportation projects, we are still forecasting 2015 to be the first year since the recession hit to top $1 trillion in construction spending for the year.