August Value of New Construction Holds Steady

Construction spending during August 2019 was estimated at a seasonally adjusted annual rate of $1,287.3 billion, 0.1% above the revised July estimate of $1,285.6 billion. The U.S. Census Bureau said the August figure is -1.9% percent below the August 2018 estimate of $1,312.2 billion. During the first eight months of this year, construction spending amounted to $851.3 billion, -2.3% below the $871.3 billion for the same period in 2018.
 

Private construction. Spending on private construction was at a seasonally adjusted annual rate of $955 billion, nearly the revised July estimate of $954.8 billion. Residential construction was at a seasonally adjusted annual rate of $507.2 billion in August, +0.9% above the revised July estimate of $502.5 billion. Nonresidential construction was at a seasonally adjusted annual rate of $447.9 billion in August, -1% . below the revised July estimate of $452.3 billion.
Private office construction maintained a healthy year-over-year pace, checking in with a +6.2% increase over Aug. 2018 to $68.8 billion. Private health care construction also came in comparatively strong, with a +4.6% YOY increase to $34.1 billion.

Public construction. In August, the estimated seasonally adjusted annual rate of public construction spending was $332.3 billion, +0.4% above the revised July estimate of $330.8 billion. Educational construction was at a seasonally adjusted annual rate of $77.0 billion, +1.4% above the revised July estimate of $75.9 billion, but down -1.2% over Aug. 2018. Construction of public amusement and recreation facilities showed strong YOY data with a +15.1% increase to $14.3 billion in August.