July 2023 Construction Spending Nudges 0.07% Above Revised June’s $1958.9 Billion to $1972.6 Billion – Current Construction Markets Snap Shot Analysis & Run Down Report

United States Of America – Construction spending in July 2023 is expected to be $1,972.6 billion, 0.7 percent higher than the revised June projection of $1,958.9 billion.

Total Construction

Year over year Construction Spending amount for July is 5.5 percent higher than the projection for July 2022 of $1,869.3 billion. Construction spending was $1,101.5 billion in the first seven months of this year, up 3.7 percent (1.0 percent) from $1,062.1 billion in the same period in 2022.

July 2023 is expected to be $1,972.6 billion, 0.7 percent higher than the revised June projection of $1,958.9 billion.

Private Construction

Spending on Private Construction was $1,548.9 billion on a seasonally adjusted yearly basis, 1.0 percent more than the revised June estimate of $1,533.7 billion.

In July, the seasonally adjusted annual rate of residential building was $879.0 billion, 1.4 percent higher than the revised June estimate of $866.8 billion. In July, nonresidential construction was at a seasonally adjusted annual rate of $670.0 billion, 0.5 percent higher than the revised June estimate of $666.9 billion.

Public Construction

The seasonally adjusted annual rate of Public Construction spending was $423.7 billion in July, 0.4 percent lower than the revised June estimate of $425.2 billion. The seasonally adjusted annual rate of Educational Construction was $89.8 billion, 0.1 percent higher than the revised June estimate of $89.7 billion. The seasonally adjusted annual rate of Highway Construction was $128.1 billion, 0.6 percent less than the revised June estimate of $128.9 billion.

DATA RELEASE RESOURCE

(Millions of dollars. Details may not add to totals due to rounding.)
							% YOY Change
Type of Construction	Jul 2023p	Jun 2023r	May 2023r	Apr 2023	Mar 2023	Jul 2022	Jun 2023	Jul 2022
Total Construction	1,972,608	1,958,945	1,946,733	1,907,837	1,901,401	1,869,262	0.7	5.5
Residential	889,118	876,684	864,027	834,713	856,947	939,588	1.4	-5.4
Nonresidential	1,083,490	1,082,261	1,082,705	1,073,124	1,044,454	929,674	0.1	16.5
Lodging	23,009	23,150	23,145	22,988	22,744	19,337	-0.6	19.0
Office	98,675	98,043	96,838	96,482	94,772	90,059	0.6	9.6
Commercial	128,131	127,325	127,761	128,809	127,474	125,416	0.6	2.2
Health care	60,464	60,978	61,852	62,128	61,749	54,513	-0.8	10.9
Educational	112,150	112,043	112,404	110,685	109,604	101,661	0.1	10.3
Religious	3,090	3,159	2,998	3,021	3,243	3,126	-2.2	-1.2
Public safety	13,241	13,215	13,080	11,946	11,910	12,269	0.2	7.9
Amusement and recreation	32,438	32,573	31,994	31,258	29,764	29,982	-0.4	8.2
Transportation	63,103	63,742	62,987	62,841	61,986	58,220	-1.0	8.4
Communication	24,709	24,464	24,483	24,540	24,554	24,585	1.0	0.5
Power	116,113	115,721	118,003	118,185	117,803	109,478	0.3	6.1
Highway and street	128,726	129,621	129,654	129,324	125,071	115,052	-0.7	11.9
Sewage and waste disposal	39,865	40,379	39,486	38,848	38,707	33,696	-1.3	18.3
Water supply	27,270	27,131	26,204	25,208	25,220	24,799	0.5	10.0
Conservation and development	10,994	11,460	11,559	12,044	12,397	9,520	-4.1	15.5
Manufacturing	201,511	199,258	200,258	194,818	177,457	117,961	1.1	70.8
Total Private Construction	1,548,936	1,533,731	1,523,977	1,490,594	1,491,518	1,488,871	1.0	4.0
Residential	878,979	866,805	853,896	824,707	846,865	929,672	1.4	-5.5
New single family	389,862	379,119	371,929	364,887	369,398	459,836	2.8	-15.2
New multifamily	133,378	133,080	130,516	129,034	126,961	107,018	0.2	24.6
Nonresidential	669,958	666,926	670,081	665,887	644,654	559,199	0.5	19.8
Lodging	22,709	22,878	22,904	22,615	22,368	18,786	-0.7	20.9
Office	84,124	83,914	82,821	82,368	81,540	77,016	0.3	9.2
Commercial	123,731	122,806	123,116	123,891	122,705	120,991	0.8	2.3
Health care	47,838	48,346	49,234	49,396	49,247	43,076	-1.1	11.1
Educational	22,309	22,303	22,454	22,150	21,614	18,950	0.0	17.7
Religious	3,090	3,159	2,998	3,021	3,243	3,126	-2.2	-1.2
Amusement and recreation	15,730	15,715	15,290	15,230	14,964	16,181	0.1	-2.8
Transportation	19,467	19,248	19,211	19,029	18,902	17,078	1.1	14.0
Communication	24,344	24,110	24,159	24,211	24,222	24,481	1.0	-0.6
Power	102,904	102,767	105,200	106,094	105,520	99,673	0.1	3.2
Manufacturing	200,988	198,735	199,731	194,403	176,948	117,242	1.1	71.4
Total Public Construction	423,672	425,215	422,756	417,243	409,882	380,391	-0.4	11.4
Residential	10,140	9,880	10,131	10,005	10,082	9,916	2.6	2.3
Nonresidential	413,532	415,335	412,625	407,238	399,800	370,475	-0.4	11.6
Office	14,552	14,130	14,017	14,114	13,232	13,043	3.0	11.6
Commercial	4,400	4,518	4,645	4,918	4,769	4,425	-2.6	-0.6
Health care	12,626	12,632	12,619	12,732	12,502	11,437	0.0	10.4
Educational	89,841	89,741	89,951	88,535	87,990	82,711	0.1	8.6
Public safety	13,030	12,979	12,858	11,693	11,698	12,032	0.4	8.3
Amusement and recreation	16,708	16,859	16,704	16,028	14,800	13,801	-0.9	21.1
Transportation	43,637	44,494	43,776	43,812	43,085	41,142	-1.9	6.1
Power	13,210	12,953	12,802	12,091	12,283	9,805	2.0	34.7
Highway and street	128,139	128,918	128,856	128,495	124,295	114,282	-0.6	12.1
Sewage and waste disposal	38,872	39,340	38,431	37,320	37,284	32,935	-1.2	18.0
Water supply	26,378	26,196	25,337	24,381	24,294	24,045	0.7	9.7
Conservation and development	10,953	11,428	11,537	12,000	12,352	9,444	-4.2	16.0
*Preliminary subject to be revised
https://census.gov/construction/c30/meth.html

Construction Spending Data

Analytics & Run-Down Summary Brief

Continued Geo-Political nuances and complications including communication breakdowns, political insubordination events and the ongoing upcoming election climate are holding back some numbers in the Public Construction segments and higher than usual interest rates constraining private markets and affordable housing.

Although the percentage of corporate home ownership of rentals & private equity landlord ownership is at a continued concerning unbalance and increased trend over past years respectively. Construction and certificates of occupancy especially in Connecticut, Northeast & New England is currently thriving though more leaning towards higher and lower cost of living metro areas and sub-burbs. Rent verse own finance or monthly cost comparison is now lower and attractive currently due to high interest rates, cost of living and other incentives.

Mortgage applications and refinance data has also hit lowest numbers since 1996 and can be mostly contributed to what is a confusing time for the real estate, banking industry and politics worldwide.

A combination and continued increase of natural disasters, geo-located events and geo-political corporate unrest will add to roller-coaster activity and continue to lean on the numbers. As seen in other data such as off-shore and renewable projects including energy storage and solar we see political environments that are stalling developments and corporate finance issues including new feasibility adjustments and required cost audits.

Expenses and losses including higher operating costs due to increased underwriting and business expenses from not only natural disasters, increased ordering demand, but insurance policies across the board for business coverage, workers compensation, retirement and health plans etc.

Cyber policies have increased to more of an expense and inflationary cost to all companies thats takes time and money consistently, the holds and effects of events are visually showing. Policies will continue to become more filled with holes and burden the small to medium sized enterprises and suppliers including freight carrier insurance.

Lumber has seen what can only be seen as supply chain inflation’s where a larger spike in Lumber contracts, and wholesale order costs of goods sold are appearing. Lumber saw a high in July of $590 MBF – a far cry from the spring prices near $335 MBF we saw earlier this seasons.

Iron Ore has seen increases that nearly double that of lows of last fall but signifigantly more attractive and prime then pandemic highs.

Rebar, Steel, Coil and Structural materials remain attractive and steady. Scrap remains lower affecting salvage and demolition credits on current live bidding although force majure clauses learned the hard way for contractors and developers during the pandemic will continue to pad contract bidding and longer term contracts and projects.