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Value of New Construction Shows Gain of Less Than 1% in June to $842.1 Billion

Aug. 10, 2012
The Department of Commerce said construction spending during June 2012 was estimated at a seasonally adjusted annual rate of $842.1 billion, 0.4 percent above the revised May estimate of $838.3 billion.

The Department of Commerce said construction spending during June 2012 was estimated at a seasonally adjusted annual rate of $842.1 billion, 0.4 percent above the revised May estimate of $838.3 billion. The June figure is 7% above the June 2011 estimate of $786.8 billion. During the first six months of this year, construction spending amounted to $387.1 billion, 9% above the $355.1 billion for the same period in 2011.

Private construction. Spending on private construction was at a seasonally adjusted annual rate of $567.9 billion, 0.7 percent above the revised May estimate of $564.2 billion, and 13.1% above the June 2011 total. Residential construction was at a seasonally adjusted annual rate of $265.6 billion in June, 1.3% above the revised May estimate of $262.1 billion. Nonresidential construction was at a seasonally adjusted annual rate of $302.3 billion in June, 0.1% above the revised May estimate of $302.1 billion. Although private office construction was up only 0.4% to $24.9 billion over May, it was up a healthy 6.6% YTY over June 2011.

Public construction. In June, the estimated seasonally adjusted annual rate of public construction spending was $274.2 billion, nearly the same as the revised May estimate of $274.1 billion, and down 3.7% from the June 2011 total. Educational construction was at a seasonally adjusted annual rate of $65.7 billion, 1.4 percent below the revised May estimate of $66.6 billion. Overall, public construction data was weaker than private construction in June, with the residential, amusement and recreation, transportation, sewage and waste disposal, and highway and street categories being the only segments showing any growth over May.