spending as a whole was essentially flat in July, but residential spending
showed significant growth. The U.S. Census Bureau reported that total
expenditures from both public and private sources were at a seasonally adjusted
annual rate of $1.365 trillion, a 0.1 percent increase from June but down 0.1
percent from July 2019.
an unadjusted basis $124.747 billion was spent compared to $123.675 billion the
previous month. For the year-to-date (YTD) $792.641 billion has been expended,
a 4.0 percent increase over the first seven months of last year.
funded construction increased by 0.6 percent compared to June, an annual
spending rate of $1.014 trillion. This is down 1.8 percent from the July 2019
total. Private spending for the month was $89.787 billion on a non-adjusted
basis up from $89.467 billion in June. YTD spending has increased by 3.3 percent
compared to 2019, to a total of $596.309 billion.
construction fared far better, accounting for $546.600 billion of the July
total compared to $535.586 billion in June, a 2.1 percent gain and 0.5 percent
more than was spent a year earlier. For the month, the unadjusted residential
spending was $50.112 billion bringing the total for the YTD to $321.585
billion, a 5.7 percent gain.
construction spending was up 3.1 percent month-over-month to $268.018 billion,
but down 3.2 percent from the previous July. New multifamily construction rose
4.9 percent from June and was 6.0 percent higher on an annual basis. Single
family spending is 2.9 percent higher YTD than last year at $159.016 billion
but multi-family spending has declined by 0.8 percent.
National Association of Home Builders (NAHB) produced a graph of its
construction spending index reflecting the July report. Analyst Na Zhao says
the graph (the base is January 2000), illustrates the solid growth in
single-family construction and home improvement from the second half of 2019 to
February 2020, before the COVID-19 pandemic hit the U.S. economy. New
multifamily construction spending has picked up the pace after a slowdown from
the second half of 2019.
funded construction was at an annual rate of $351.105 billion in June, a 1.3
percent monthly decline but 5.1 percent more than was spent a year earlier. The
total for the YTD is $196.332 billion, representing 6.5 percent growth.
has stood out this year is the increase in public spending on residential
construction although the numbers remain small. The $8.854 billion spent in
July was up 1.9 percent from June but was 41.0 percent higher than spending in
July 2019. Likewise, YTD spending, while only $4.625 billion in total is 34.9
percent more than was spent to this point last year.