by Calculated Risk on 8/02/2021 10:30:00 AM
From the Census Bureau reported that overall construction spending decreased:
Construction spending during June 2021 was estimated at a seasonally adjusted annual rate of $1,552.2 billion, 0.1 percent above the revised May estimate of $1,551.2 billion. The June figure is 8.2 percent above the June 2020 estimate of $1,435.0 billion.
Private spending increased and public spending decreased:
Spending on private construction was at a seasonally adjusted annual rate of $1,215.2 billion, 0.4 percentabove the revised May estimate of $1,210.3 billion. …
In June, the estimated seasonally adjusted annual rate of public construction spending was $337.0 billion, 1.2 percent below the revised May estimate of $340.9 billion.
This graph shows private residential and nonresidential construction spending, and public spending, since 1993. Note: nominal dollars, not inflation adjusted.
Residential spending is 13% above the bubble peak (in nominal terms – not adjusted for inflation).
Non-residential spending is 9% above the bubble era peak in January 2008 (nominal dollars), but has been weak recently.
Public construction spending is 4% above the previous peak in March 2009, and 29% above the austerity low in February 2014, but weak recently.
On a year-over-year basis, private residential construction spending is up 29.3%. Non-residential spending is down 6.0% year-over-year. Public spending is down 7.5% year-over-year.
Construction was considered an essential service in most areas and did not decline sharply like many other sectors, but some sectors of non-residential have been under pressure. For example, lodging is down 26.5% YoY, multi-retail down 5.2% YoY, and office down 9.1% YoY.