Value of New Construction Slips Marginally in August but Still Tracking +9% YTY

The U.S. Census Bureau said construction spending during Aug. 2012 was estimated at a seasonally adjusted annual rate of $837.1 billion, 0.6% below the revised July estimate of $842 billion. The August figure is 6.5% percent above the Aug. 2011 estimate of $786.3 billion. During the first eight months of this year, construction spending amounted to $545.2 billion, 9% above the $500.1 billion for the same period in 2011.

Private construction. Spending on private construction was at a seasonally adjusted annual rate of $562.2 billion, 0.5% below the revised July estimate of $564.8 billion. Residential construction was at a seasonally adjusted annual rate of $273.5 billion in August, 0.9% above the revised July estimate of $271.1 billion. Nonresidential construction was at a seasonally adjusted annual rate of $288.7 billion in August, 1.7% below the revised July estimate of $293.7 billion. With the exception of single-family construction, up +2.8% to $131 billion and multi-family construction (+3.7), and amusement and recreation, (+1.2%) all other key construction categories were down in August.

Public construction. In August, the estimated seasonally adjusted annual rate of public construction spending was $274.9 billion, 0.8% below the revised July estimate of $277.2 billion. Public commercial construction gained 4.6% in August, but was down -20.5% YTY. Public health care construction projects were a bright spot in August, increasing 3% to $1.3 billion. Educational construction was at a seasonally adjusted annual rate of $67 billion for the month, 3.4% below the revised July estimate of $69.4 billion, and was down 7% over Aug. 2011.