Residential construction spending increased 23.9% year-over-year in August, the U.S. Census Bureau reported.
As the residential sector continued its upward trajectory—up 0.4% month-over-month—the nonresidential construction sector continued to decline, falling 0.4% month-over-month and 3.0% year-over-year.
“Nearly every nonresidential spending segment has deteriorated from already inadequate 2020 levels in the first two-thirds of this year,” stated Ken Simonson, chief economist for the Associated General Contractors of America. “Meanwhile, soaring materials costs mean that fixed public budgets buy even less infrastructure than before.”
Total private construction dipped 0.1% for the month, but surged 13.0% from August 2020, bolstered by residential construction. Total public construction increased 0.5% in August but declined 4.0% year-over-year.
