According to the U.S. Census Bureau, construction spending during August 2024 was estimated at a seasonally adjusted annual rate of $2,131.9 billion, 0.1% (±1.2%) below the revised July estimate of $2,133.9 billion.
The August figure is 4.1% (±1.6%) above the August 2023 estimate of $2,047.4 billion. During the first eight months of this year, construction spending amounted to $1,428.5 billion, 7.6% (±1.2%) above the $1,327.0 billion for the same period in 2023.
In August, the estimated seasonally adjusted annual rate of public construction spending was $489.8 billion, 0.3% (±2.0%) above the revised July estimate of $488.2 billion.
Educational construction was at a seasonally adjusted annual rate of $102.4 billion, virtually unchanged from (±2.6%) the revised July estimate of $102.3 billion.
Highway construction was at a seasonally adjusted annual rate of $141.4 billion, 1.1% (±5.4%) above the revised July estimate of $140.0 billion.
Spending on private construction was at a seasonally adjusted annual rate of $1,642.2 billion, 0.2% (±0.7%) below the revised July estimate of $1,645.8 billion.
Residential construction was at a seasonally adjusted annual rate of $899.9 billion in August, 0.3% (±1.3%) below the revised July estimate of $903.0 billion.
Nonresidential construction was at a seasonally adjusted annual rate of $742.2 billion in August, 0.1% (±0.7%) below the revised July estimate of $742.8 billion.
“Although the federal government has announced thousands of project awards in the past three years, most of the money has yet to turn into construction contracts, let alone work under way,” said Associated General Contractors of America Chief Economist Ken Simonson. “There is still great potential for infrastructure and power projects, but the timing remains uncertain. Meanwhile, single-family homebuilding should pick up as mortgage rates decline, but multifamily construction is likely to shrink until the current glut of apartments is absorbed.”
Association officials noted the federal government has done a good job in announcing projects that will receive construction funding. But they cautioned that delays with environmental permitting and confusion about new Buy America requirements are leading to delayed starts for many of those projects. They urged the Biden administration to accelerate permitting reviews and to give federal agencies greater flexibility in issuing Buy America waivers.
“Nonresidential construction spending inched higher in August, and that’s almost entirely due to ongoing infrastructure investments,” said Associated Builders and Contractors (ABC) Chief Economist Anirban Basu. “Public spending accounted for all of the nonresidential segment’s monthly increase and has risen nearly 8% over the past year, significantly outpacing privately financed nonresidential construction activity. As a result of ongoing weakness in certain private subsegments, ABC’s Construction Backlog Indicator has fallen by a full month over the past year. While falling interest rates will eventually serve as a tailwind for the industry, it may be several quarters before privately financed segments see any substantial relief.”
