For the second consecutive month, the US annual rate of construction spending has dropped. Construction spending fell in September to a seasonally adjusted annual rate of $950.9 billion. This is 0.4 percent lower than the revised August amount of $955.2 billion.
According to the US Census Bureau, total construction spending from January through September was $710.1 billion which is 6.1 percent higher than the $669.3 billion spent during the same period last year (January – September 2013).
Private construction spending was at a seasonally adjusted annual rate of $680.0 billion in September. This is a 0.1 percent drop from August’s revised amount of $680.8 billion. Nonresidential construction accounted for about 49 percent of all private construction spending at a seasonally adjusted annual rate of $331.0 billion. This is 0.6 percent lower than the revised August amount of $333.0 billion for nonresidential private construction.
Public construction spending in September was estimated at $270.9 billion, 1.3 percent lower than the revised August estimate of $274.4 billion.
Despite construction spending dropping the past couple of months, we are still on pace beat last year’s numbers. The September 2014 annual rate of $950.9 billion is 2.9 percent higher than the September 2013 estimate of $924.2 billion. If construction spending continues at its current rate of $950.9 billion through the rest of the year, construction spending in 2014 will be about 4.4 percent higher than the amount spent last year.