WASHINGTON - Construction spending rose by 0.1% in August, below the 0.5% gain expected, as residential construction saw declines but nonresidential construction saw gains. Nonresidential rose by 0.7% compared to a residential construction decline of -0.7%, data released by the Commerce Department Monday morning showed.
Analysts surveyed by MNI had expected total construction spending to rise by 0.5% after a gain of 0.1% in July. July was revised up to 0.2%, June construction was revised up to -0.7%, while May was unrevised at +0.7%.
Private residential construction fell by 0.7% in the month, following a 0.2% gain in July. Home building ex. new homes, also known as remodeling, saw a 0.6% decline, according to an MNI calculation.
Also based on an MNI calculation, total new homes fell by 0.8%. Single-family building was down 0.7%, and multi-family building posted a 1.7% decline.
In addition to the decline in private residential, private nonresidential construction fell by 0.2% in August, driving the decline in total private construction. The main drivers of the category were decreases in commercial (-0.9%), power (-1.3%), and manufacturing (-0.7%).
Following an upward July revision to a 1.7% gain, public construction spending rose 2.0% in August.
The rise in public construction was driven by a 9.1% gain in offices, a 3.7% rise in amusement and recreation, and a 4.3% gain in water supply.
State and local construction rose 1.7% in the month. Federal construction was also up 5.9%.
