Economy

US construction spending drops again in August

Written by David Schollaert

October 3, 2024

Construction spending in the US declined for a third month in August but showed an increase year over year (y/y).

The US Census Bureau estimated construction spending to be $2.131 trillion in August on a seasonally adjusted annual rate (SAAR). While this was 0.1% below July’s revised spending rate, it was 4.1% higher than spending in August 2023.

Residential construction outlays, at $911.4 billion in August, were off 0.3% month on month (m/m) but 2.7% higher y/y.

August spending on nonresidential construction projects was up marginally m/m and was 5.2% higher y/y.

Within the non-res category, spending was highest on highway construction. Expenditures in this subcategory rose 1.1% m/m to $141.4 billion in August. State and local government spending grew by 0.3%, and outlays on federal government projects rose by 0.5%.

Census figures show a notable rise in total construction spending 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 continued to move higher 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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