For the first time in 5 years, US construction spending fell YoY in August. The 2nd monthly drop in a row and large downward revisions reduced construction spending to its weakest since 2015. Public construction spending dropped considerably more than private, with highway construction tumbling.

This is the biggest drop in over 5 years…

 

At a time when seasonally, construction spending has picked up…

 

As the report details, the decline was broad based and impacted both private and public construction:

PRIVATE CONSTRUCTION

Spending on private construction was at a seasonally adjusted annual rate of $871.6 billion, 0.3 percent below the revised July estimate of $874.6 billion. Residential construction was at a seasonally adjusted annual rate of $449.2 billion in August, 0.3 percent (±1.3%)* below the revised July estimate of $450.4 billion. Nonresidential construction was at a seasonally adjusted annual rate of $422.4 billion in August, 0.4 percent below the revised July estimate of $424.2 billion.

PUBLIC CONSTRUCTION

In August, the estimated seasonally adjusted annual rate of public construction spending was $270.5 billion, 2.0 percent below the revised July estimate of $276.0 billion. Educational construction was at a seasonally adjusted annual rate of $66.9 billion, 0.4 percent (±3.9%)* below the revised July estimate of $67.2 billion. Highway construction was at a seasonally adjusted annual rate of $84.6 billion, 2.9 percent below the revised July estimate of $87.2 billion.

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