Infrastructure

US construction spending edges lower in June

Written by David Schollaert

August 2, 2024

Construction spending in the US in June was slightly lower, declining for the second straight month. Despite the decline it increased notably year on year (y/y).

The US Census Bureau reported June construction spending to be an estimated $2.148 trillion on a seasonally adjusted annual rate (SAAR). While this was just 0.3% below May’s spending rate, it was 6.4% higher than spending in June 2023.

Residential construction spending, at $939.8 billion in June, was off 0.4% month on month (m/m) but 7.5% higher y/y.

June spending on nonresidential construction projects was also marginally down vs. spending in May but was 5.5% higher when compared to June 2023.

Within the nonres category, spending was highest on manufacturing construction. Spending in this subcategory rose 0.1% m/m to $223.8 billion in June. Spending on commercial building, meanwhile, declined for a seventh consecutive month to $120.1 billion.

Commenting on June’s data, the Associated General Contractors of America (AGC) noted, “Although overall outlays fell for the second month in a row, there were enough bright spots to suggest construction will continue growing, on balance.”

Nonres categories to watch for, according to Ken Simonson, AGC’s chief economist, are data centers, manufacturing, and several infrastructure projects, which all saw increased spending.

Census figures show total construction spending has been rising notably in recent years (see Figure 1). Spending on residential projects has more or less leveled out over the past year after peaking in 2022. At the same time, spending on nonresidential projects has been surging in recent years.

David Schollaert

David Schollaert is a senior analyst for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. Based in CRU’s Pittsburgh office, David can be reached at david@steelmarketupdate.com or 724-720-1008.

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