Construction Spending Up 0.4 Percent, Entirely Due to Public Spending

In August, new construction spending rose 0.4 percent, following a large decline of 1.4 percent in July. The month’s increase was entirely due to a 2.5 percent rise in public construction spending. Housing construction continued to decline in the wake of the expired home buyer tax credit, falling 0.3 percent ( this was the smallest decline since April). Private non-residential spending fell 1.4 percent, following an increase of 0.2 percent, which at the time was the first increase since March 2009.

On a year-ago basis, total construction spending was 10.0 percent lower. Private residential spending was down 1.7 percent, and private non-residential spending was down 24.2 percent. Public sector spending was down 1.0 percent from a year earlier.