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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.
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.
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.
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|
|Amusement and recreation||32,438||32,573||31,994||31,258||29,764||29,982||-0.4||8.2|
|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|
|Conservation and development||10,994||11,460||11,559||12,044||12,397||9,520||-4.1||15.5|
|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|
|New single family||389,862||379,119||371,929||364,887||369,398||459,836||2.8||-15.2|
|Amusement and recreation||15,730||15,715||15,290||15,230||14,964||16,181||0.1||-2.8|
|Total Public Construction||423,672||425,215||422,756||417,243||409,882||380,391||-0.4||11.4|
|Amusement and recreation||16,708||16,859||16,704||16,028||14,800||13,801||-0.9||21.1|
|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|
|Conservation and development||10,953||11,428||11,537||12,000||12,352||9,444||-4.2||16.0|
|*Preliminary subject to be revised|
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.