July 2015 Construction Sees Small Monthly Increase but Enjoys 13.7% YOY Surge

The U.S. Department of Commerce says construction spending during July 2015 was estimated at a seasonally adjusted annual rate of $1,083.4 billion, 0.7% above the revised June estimate of $1,075.9 billion. The July figure is 13.7% above the July 2014 estimate of $952.5 billion. During the first seven months of this year, construction spending amounted to $583.2 billion, 9.3% above the $533.7 billion for the same period in 2014.

Private construction. Spending on private construction was at a seasonally adjusted annual rate of $787.8 billion, 1.3% above the revised June estimate of $777.4 billion. Residential construction was at a seasonally adjusted annual rate of $380.8 billion in July, 1.1% above the revised June estimate of $376.6 billion. Nonresidential construction was at a seasonally adjusted annual rate of $407 billion in July, 1.5% above the revised June estimate of $400.8 billion. The manufacturing segment was the star of the show in  July’s Private Construction category, with a 4.7% monthly increase to $93.4 billion — a 73% increase year-over-year (YOY) from July 2014.

Public construction. In July, public construction spending was $295.6 billion, 1% below the revised June estimate of $298.5 billion. Educational construction was at a seasonally adjusted annual rate of $66.4 billion, 3% below the revised June estimate of $68.4 billion.  The public office and power construction categories were tracking above other niches. At $8.4 billion, office construction was up 5.7% monthly and 10% YOY, while power construction was up 8.5% to $11 billion for July, but down 7.2% YOY.