Year-to-date construction spending through the first half of the year was up 3.0% vs. 2022.
The U.S. Census Bureau released its monthly construction spending report on Aug. 1, showing that spending had a similar month-to-month increase during June and remains ahead of last year’s year-to-date pace.
Bureau data showed that June U.S. construction spending was at a seasonally adjusted annual rate of $1.94 trillion, 0.5% above May’s revised $1.93 trillion. The June figure was up 3.5% year-over-year. Spending in 2023’s first six months totaled $917 billion, up 3.0% vs. 2022.
Private Construction
June private construction spending was up 0.5% from the revised May total and up 1.0% year-over-year
- Residential construction was up 0.9% vs. May and down 10.3% year-over-year
- Nonresidential construction spending was virtually unchanged from May and up 20.9% year-over-year
Public Construction
June public construction spending was up 0.3% vs. the revised May total and up 13.8% year-over-year
- Educational construction spending was down 0.1% vs. May and up 7.9% year-over-year
- Highway construction was 0.1% down vs. May and up 20.3% year-over-year
- Commercial construction was up 0.1%
“Nonresidential construction spending growth downshifted over the past two months,” ABC Chief Economist Anirban Basu said in a news release. “While stakeholders can expect ongoing spending growth in public nonresidential construction segments as more Infrastructure Investment and Jobs Act monies flow into the economy, private developer-driven activity appears to be drying up in the context of higher costs of capital and tighter credit conditions. Among other things, these dynamics will translate into larger spreads in performance among contractors.”
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Mike Hockett is MDM’s executive editor, having joined the publication in March 2022. He oversees MDM’s editorial content and direction, coordinates with contributing authors, conducts interviews with executives in the wholesale distribution space and serves as the editorial face of MDM at industry events. He has extensively covered the distribution and manufacturing sectors since 2014. Hockett earned a degree in print journalism from the University of Wisconsin-Eau Claire and works from his home in Madison, Wisconsin. He can be contacted at mike@mdm.com.
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