Healing Housing Market Fuels Construction Spending in July
Construction activity in the United States continued to gain steam in July, according to the U.S. Census Bureau. The seasonally adjusted value of construction put in place increased 0.6 percent on the month and 5.2 percent on the year to an annual rate of $900.8 billion, beating expectations for a more modest increase of 0.3 percent on the month and 4.7 percent on the year.
The increase was led by private residential spending, which increased 0.6 percent on the month and 17.2 percent on the year to a SAAR of $334.6 billion. Total residential spending — both private and public — increased 0.5 percent on the month and 16.8 percent on the year to $340.6 billion.
The data are broadly consistent with strong New Residential Construction data, recently released by the U.S. Department of Housing and Urban Development. The data for July show that new authorized building permits increased 2.7 percent on the month and 12.4 percent on the year in July to a SAAR of 943,000.