Construction spending dipped in July, as residential construction fell amid rising mortgage rates and declining home affordability.
The U.S. Census Bureau said Thursday that total construction spending during July 2022 was estimated at a seasonally adjusted annual rate of $1.777 trillion, down 0.4% from the revised June estimate of $1.784 trillion.
The July figure, however, was still 8.5% above the July 2021 estimate of $1.64 trillion.
Through the first seven months of 2022, total construction spending was $1.01 triillion, 10.8% above the $915.2 billion for the same period in 2021, the report said.
Spending on private construction was at a seasonally adjusted annual rate of $1.42 trillion, 0.8% below the revised June estimate of $1.44 trillion.
Residential construction was at a seasonally adjusted annual rate of $920.4 billion in July, 1.5% below the revised June estimate of $934.4 billion, but still 14% above the July 2021 estimate of $815 billion.
Spending on new single-family homes was estimated at an annual rate of $450.1 billion, down 4% from the June estimate of $469 billion. The July estimate was still 2.9% above the estimate for July a year earlier.
Spending on multifamily homes also decreased from a month earlier. According to the report, spending fell 0.6% to $100.5 billion. It was also down 1.2% from a year earlier.
Nonresidential construction was at a seasonally adjusted annual rate of $503.9 billion in July, 0.4% above the revised June estimate of $502.1 billion.
While private spending fell In July, public spending increased. The estimated seasonally adjusted annual rate of public construction spending was $353.1 billion, 1.5% above the revised June estimate of $347.9 billion.
Highway construction was at a seasonally adjusted annual rate of $102.7 billion, 4.3% above the revised June estimate of $98.4 billion.
