Construction spending has fallen for the second consecutive month, dipping 0.6 percent in August, according to the U.S. Census Bureau. However, spending is up 6.5 percent from one year ago.
Nonresidential construction spending fell 1.3 percent to a seasonally adjusted annual rate of $557.2 billion. Year-over-year, nonresidential construction spending is up 2.2 percent.
Private nonresidential construction spending declined 1.7 percent for the month, but remains 7.2 percent higher than one year ago. Public nonresidential construction spending slipped 0.9 percent in August and is down 2.7 compared to the same time last year.
Construction subsectors posting the largest monthly decreases in spending include communication, down 3.4 percent; power, down 3 percent; and educational, down 2.9 percent. The largest year-over-year decreases in spending were experienced in conservation and development, down 25.6 percent; water supply, down 12.8 percent; religious, down 11.8 percent; and communication, down 4.4 percent.
Only three of sixteen nonresidential construction subsectors posted increases in spending for the month, including public safety, up 3.3 percent; sewage and waste disposal, up 2.4 percent; and health care, up 0.4 percent. Eight subsectors have registered increases in spending on a year-over-year basis, including lodging, up 30.3 percent; power, up 11.5 percent; manufacturing, up 6.3 percent; and transportation, up 4.3 percent.
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