Department of Commerce Reports Sept. 2014 Value of New Construction Up 6.1%

The Department of Commerce says construction spending during Sept. 2014 was estimated at a seasonally adjusted annual rate of $950.9 billion, 0.4% below the revised August estimate of $955.2 billion. The September figure is 2.9% above the Sept. 2013 estimate of $924.2 billion. During the first nine months of this year, construction spending amounted to $710.1 billion, 6.1% above the $669.3 billion for the same period in 2013.

Private construction. Spending on private construction was at a seasonally adjusted annual rate of $680 billion, 0.1% below the revised August estimate of $680.8 billion. Residential construction was at a seasonally adjusted annual rate of $349.1 billion in September, 0.4% above the revised August estimate of $347.7 billion. Nonresidential construction was at a seasonally adjusted annual rate of $331 billion in September, 0.6% below the revised August estimate of $333 billion. Two of the largest private construction categories, office and commercial, added to their impressive year-over year growth, with 2.2% growth in September for private office construction and a 1.4% increase in commercial construction for the month. The categories are up 18% and 13.3% respectively over Sept. 2013.

Public construction. In September, the estimated seasonally adjusted annual rate of public construction spending was $270.9 billion, 1.3% below the revised August estimate of $274.4 billion. Educational construction was at a seasonally adjusted annual rate of $62.8 billion, 0.1% above the revised August estimate of $62.8 billion. Public health-care construction increased 2.9% to $10.5 billion but is down 5% over Sept. 2013.