A closer look at the U.S. Census Bureau’s July Construction Spending data, with further analysis provided by the National Association of Home Builders (NAHB), reveals that total private residential construction spending rose 0.5% in July to a SAAR of $773.0 billion. Year-over-year total private residential construction spending was 27% higher.
According to the NAHB’s analysis, the monthly gains are attributed to the strong growth of spending on single-family construction and improvements. Single-family construction spending rose to a $416.3 billion annual pace in July, up by 0.9% over the upward revised June estimates. It increased by 47.1% on a year-over-year basis. Spending on improvements edged up 0.2% in July, after a 0.7% dip in June. Multifamily construction spending stayed flat in July but was 14.9% higher than a year ago.
On the other hand, private nonresidential construction spending slipped to a SAAR of $458.0 billion in July, a -0.2% dip from upwardly revised June estimates. And it was -3.6% lower than a year ago.
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Private Residential Spending Increased in July