Residential Construction Spending Up in September

Construction spending in September totaled $1.15 trillion at a seasonally adjusted annual rate, according to data released by the Associated General Contractors of America. September’s level was down 0.4 percent from August and down 0.2 percent from the September 2015 level. However, construction spending in the first nine months of this year is 4.4 percent above the same period in 2015.

Private residential construction spending took a 0.5 percent uptick from August and September and was 5.8 percent higher on a year-to-date basis. Spending on multifamily residential construction increased by two percent for the month and 18.8 percent year-to-date, while single-family spending saw a scant 0.1 percent increase for the month and more robust six percent year-to-date boost.

Private nonresidential construction spending dropped one percent for the month but was up 7.8 percent year-to-date. Commercial construction decreased by 2.4 percent in September but rose by 8.6 percent year-to-date. Private office construction slipped 0.4 percent for the month but spiked by 27 percent year-to-date.

“There is still plenty of oomph in private demand for construction and growing support for school construction, but public infrastructure investment is crumbling just when it is needed most,” said Ken Simonson, the association’s chief economist. “These conflicting trends have left total construction spending nearly flat for the past 15 months.”