Economy

US construction spending slips in July

Written by David Schollaert

September 5, 2024

Construction spending in the US in July was slightly lower than June. Despite the decline, it increased notably year on year (y/y).

The US Census Bureau reported July construction spending to be an estimated $2.168 trillion on a seasonally adjusted annual rate (SAAR). While this was 0.3% below June’s revised spending rate, it was 6.7% higher than spending in July 2023.

Residential construction spending, at $941.6 billion in July, was off 0.4% month on month (m/m) but 7.7% higher y/y.

July spending on nonresidential construction projects was also marginally down vs. spending in June but was 5.9% higher than July 2023.

Within the nonres category, spending was highest on educational construction. Spending in this subcategory rose 0.9% m/m to $100.8 billion in July. State and local government spending slipped 0.1% and outlays on federal government projects jumped 2.1%.

Commenting on July’s data, the Associated General Contractors of America (AGC) noted, “Nearly all spending categories show increases from a year ago but have fluctuated in recent months.”

AGC added that while demand for construction remains elevated, demand for workers remains even stronger.

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.

Read more from David Schollaert

Latest in Economy

CRU: Dollar and bond yields rise, metal prices fall as Trump wins election

Donald Trump has won the US presidential election. The Republican party has re-taken control of the Senate. Votes are still being counted in many tight congressional races. But based on results so far, the Republicans seem likely to maintain control of the House of Representatives. If confirmed, this will give Trump considerable scope to pass legislation pursuing his agenda. What this means for US policy is not immediately obvious. Trump will not be inaugurated until Jan. 20. In the coming weeks and months, he will begin to assemble his cabinet, which may give a clearer signal on his policy priorities and approaches. Based on statements he made during the presidential campaign, we have set out the likely direction of his economic policy here and green policy here.