Construction spending in July totaled $981 billion at a seasonally adjusted annual rate, up 1.8% from the rate in June, up 8.2% from July 2013, and the highest level since December 2008, the Census Bureau reported on Tuesday. Census revised up the totals for June (by $14 billion) and May ($5 billion). Private residential spending increased 0.7% for the month and 8.0% over the latest 12 months; private nonresidential spending, 2.1% and 14%, respectively; and public construction spending, 3.0% and 2.1%. Of the three residential components, new single-family construction rose 0.5% in July and 9.4% year-over-year; new multifamily, 0.2% and 41%, respectively; and improvements to existing residential structures, 1.2% and -1.7%.
The largest private nonresidential segment was power construction (including conventional and renewable power plus oil and gas fields and pipelines), which soared 7.5% for the month and 29% year-over-year. The next largest private segments (in descending order of current size) were manufacturing, 4.4% and 25%; commercial (new and renovated retail, warehouse and farm), -2.5% and 8.6%, respectively; and office, -1.3% and 23%. Of the top two public segments, highway and street construction gained 6.9% for the month and 3.0% over 12 months, while public educational spending rose 1.6% and 0.6%.