By Manuel Gutierrez, Consulting Economist to NKBA

 

Construction spending fell 0.4 percent in July to $1.78 trillion, following a 0.5 percent drop in June.  

 

  • Total construction, however, is up 8.5 percent YOY, with private construction 9.9 percent higher and public 3.3 percent.
  • Homeowner remodeling spend rose 1.8 percent in July from June, continuing the trend of consistent growth over the past two years. 
  • Despite solid YOY gains in private construction, it’s the lowest annual comparison since March 2021.
  • Within the private sector, spending for residential projects fell for the third consecutive month while nonresidential increased during that same period, a continuing reversal of a two-year pattern.
  • Construction spending for new single-family homes was off for the third straight month in July, falling to $450 billion, a 4 percent drop from June and considerably down from a peak of $481 billion in April.
  • Multifamily construction spending has been stable for almost a year, but the number of units have been increasing in recent months, reflecting a move by builders towards lower-priced rental housing.
  • Spending for lodging-related buildings rose for the fourth consecutive month in July following a period of consistent declines since December 2019.