Spending on total private construction, residential construction, and new single-family construction all dipped in June, according to a Monday release from the U.S. Department of Commerce. The downsized outlays co-occur with declining employment in the construction industry in June reported last month.
Spending on private residential construction dipped to a seasonally adjusted annual rate of $445.8 billion in June, staying relative close to the upwardly revised rate of $445.9 in May, but significantly below the recent high of $468.4 billion reached in March. Spending in the private residential construction sector has been trending up gradually during the past six years--after falling to a low of $230.5 billion in May 2009--but it remains well below the pre-crisis peak level of $678.0 billion reached in February 2006.
New single-family construction spending dropped to $239.6 billion, down -0.4% month-over-month, but marking an increase of 4.8% year-over-year. Spending on new multifamily construction dipped -1.5% month-over-month to $59.7 billion, but still was up 16.4% from June 2015 levels.
The overall construction industry (including total private construction and total public construction) slid to a seasonally adjusted annual rate of $1.13 trillion this month, -0.6% below the revised rate of $1.14 trillion in May. Year-over-year, total residential construction (including both private and public) spending in June marked a fairly insignificant 0.3% increase from June 2015 levels.
Read the full Value of Construction Put in Place Survey release here>>