The U.S. Department of Commerce said construction spending during Aug. 2016 was estimated at a seasonally adjusted annual rate of $1,142.2 billion, 0.7% below the revised July estimate of $1,150.6 billion. The August figure is 0.3% below the Aug. 2015 estimate of $1,145.2 billion. During the first eight months of this year, construction spending amounted to $755 billion, 4.9% percent above the $720 billion for the same period in 2015.
Private construction. Spending on private construction was at a seasonally adjusted annual rate of $871.6 billion, 0.3% below the revised July estimate of $874.6 billion. Residential construction was at a seasonally adjusted annual rate of $449.2 billion in August, 0.3% below the revised July estimate of $450.4 billion. Nonresidential construction was at a seasonally adjusted annual rate of $422.4 billion in August, 0.4% below the revised July estimate of $424.2 billion.
Continuing strength in the multi-family (+13.9% YOY); office (+28% YOY); and educational (+10.1% YOY) segments were key drivers in maintain the construction market’s reasonably solid growth over 2015.
Public construction. In August, the estimated seasonally adjusted annual rate of public construction spending was $270.5 billion, 2% below the revised July estimate of $276 billion. Educational construction was at a seasonally adjusted annual rate of $66.9 billion, 0.4% below the revised July estimate of $67.2 billion. Highway construction was at a seasonally adjusted annual rate of $84.6 billion, 2.9% below the revised July estimate of $87.2 billion.
