Private Construction Spending Falls for the First Time Since Last September

Despite declines of 1.3 percent to $1.4 trillion, spending remains just below historical highs.

While non-residential spending dropped by 0.5 percent to $493 billion, the more crucial residential sector fell by a much larger 1.6 percent, to $914 billion.
It’s the first time residential construction posted a drop in 24 months compared with non-residential construction which has fallen 15 times during that same time frame.
Residential accounts for almost two-thirds of the construction market and has been steadily gaining share. Ten years ago it represented just half the spending for private construction.
Of the three residential components, single family homes posted the largest drop, off by 3.1 percent, its first decline in eight months.
Remodeling and home improvement, another residential sector, fell by a modest 0.3 percent.
Construction for housing units in multifamily buildings rose by 0.4 percent for the month to $100.6 billion, remaining rangebound for over a year.
Lodging expenditures has been impacted the most since the onset of the pandemic. Construction for the sector has fallen every month except for three over the past two years.