WASHINGTON (10/2/15)--Spending on new single-family home construction rose by 0.7% in August and 14% on a year-over-year basis, according to numbers released Thursday by the Census Bureau.
The performance helped push overall residential construction spending higher by 1.3% to $383.3 billion, a 16.1% year-over-year increase (Economy.com Oct. 1).
“The housing recovery has made recent strides but remains far from normal levels of activity,” said Thomas McCartin, Moody’s analyst (Economy.com). “Consumer confidence is up, and we expect housing demand to accelerate.”
Spending on new multifamily home construction rose 4.8% during the month and 24.7% annually.
Overall, construction spending in August came in at $1.1 trillion, a 0.7% increase on a monthly basis and 13.7% higher on a yearly basis.
Private construction spending increased 0.7% for the month, while public construction spending edged higher by 0.5%.
“Private construction increased in August at a healthy clip,” McCartin said. “All but two components are up from a year earlier. Many components have year-over-year growth rates in the double digits. Spending on power structures has been the weakest, followed by religious structures. The decline in oil prices caused hydrocarbon extraction companies to slash investment budgets.”
Spending on highway and street construction dropped 0.4%, but remained 7% higher on an annual basis. Spending on educational structures slipped by 0.2% and sits 4.4% higher annually.