The seasonally adjusted annual rate of construction spending increased to $1,094.2 billion in September 2015. This is a 14.1% higher than the September 2014 estimate of $959.2 billion. September’s annual rate is 0.6% higher than the revised August estimate of $1087.5 billion, up from August’s preliminary estimate of $1,086.2 billion. July’s amount was revised back up again from $1,079.1 billion to 1,080.4 billion. The last time the annual rate of construction spending was this high was back in March 2008 when it reached $1,095.2 billion.
Construction spending through the first nine months of 2015 totaled $786.6 billion. This is a 10.5% increase from the $711.8 billion spent from January through September 2014.
Private construction spending reached a seasonally adjusted annual rate of $794.2 billion in September. August’s preliminary estimate of $788.0 billion has been revised up to $789.7 billion and July’s estimate was revised down again from $782.3 billion to $781.2 billion. Private nonresidential construction spending for September was down to $399.5 billion from August’s revised estimate of $402.2 billion.
The seasonally adjusted annual rate of public construction spending for September was $300.0 billion. This is a 0.7% increase over August’s figure which has been revised down from $298.2 billion to $297.8 billion. July’s number has been revised back up from $296.8 billion to 299.1 billion.
Total construction spending continues to improve and has grown every month this year. Public construction spending has been hovering right around the $300 billion mark for the past four months while private construction spending has increased by about 2.7% during that time. Based on the latest numbers it looks like private construction spending will top $800 billion and public construction spending will be above $300 billion for the year.
This will be a significant improvement over the 2014 numbers, especially for private construction which totaled $686.4 billion in 2014 with public construction spending at $275.7 billion last year.