Construction Spending Declines Second Month in Row
Posted
10/18/2012
Construction spending has fallen for the second
consecutive month, dipping 0.6 percent in August, according to the
U.S. Census Bureau. However, spending is up 6.5 percent from one
year ago.
Nonresidential construction spending fell 1.3 percent to a
seasonally adjusted annual rate of $557.2 billion. Year-over-year,
nonresidential construction spending is up 2.2
percent.
Private nonresidential construction spending declined 1.7 percent
for the month, but remains 7.2 percent higher than one year ago.
Public nonresidential construction spending slipped 0.9 percent in
August and is down 2.7 compared to the same time last
year.
Construction subsectors posting the largest monthly decreases in
spending include communication, down 3.4 percent; power, down 3
percent; and educational, down 2.9 percent. The largest
year-over-year decreases in spending were experienced in
conservation and development, down 25.6 percent; water supply, down
12.8 percent; religious, down 11.8 percent; and communication, down
4.4 percent.
Only three of sixteen nonresidential construction subsectors
posted increases in spending for the month, including public
safety, up 3.3 percent; sewage and waste disposal, up 2.4 percent;
and health care, up 0.4 percent. Eight subsectors have registered
increases in spending on a year-over-year basis, including lodging,
up 30.3 percent; power, up 11.5 percent; manufacturing, up 6.3
percent; and transportation, up 4.3 percent.
Residential construction spending increased 0.9 percent for the
month and is 16.1 percent higher than August 2011.