Coming off its largest drop in a year, US construction spending saw its largest one-month gain in over two years. Construction spending rose 1.8 percent in July to a seasonally adjusted annual rate of $981.3 billion. This was an impressive rebound after dropping 0.9 percent in June which had a revised estimate of $963.7 billion.
According to the US Census Bureau, total construction spending from January through July was $535.4 billion which is 7.9 percent higher than the $496.3 billion spent during the same period last year.
Private construction spending was at a seasonally adjusted annual rate of $701.7 billion in July. This is a 1.4 percent increase over June’s revised amount of $692.2 billion. Nonresidential construction accounted for about 49 percent of all private construction spending at a seasonally adjusted annual rate of $343.6 billion.
Public construction in July was estimated at $279.6 billion, 3.0 percent higher than the revised June estimate of $271.5 billion. Educational construction and highway and street construction made up over half of all public construction spending in July.
If construction spending continues at its current rate of $981.3 billion through the rest of the year, construction spending in 2014 will be about 7.75 percent higher than the amount spent last year.