by Calculated Risk on 8/01/2008 10:15:00 AM

Construction spending declined in June for residential, but increased slightly for non-residential private construction.

From the Census Bureau: June 2008 Construction at $1,081.9 Billion Annual Rate

Spending on private construction was at a seasonally adjusted annual rate of $780.6 billion, 0.4 percent below the revised May estimate of $783.9 billion.

Residential construction was at a seasonally adjusted annual rate of $372.5 billion in June, 1.8 percent (±1.3%) below the revised May estimate of $379.1 billion.

Nonresidential construction was at a seasonally adjusted annual rate of $408.1 billion in June, 0.8 percent above the revised May estimate of $404.8 billion.

Click on graph for larger image in new window.

The graph shows private residential and nonresidential construction spending since 1993. Private non-residential construction spending has now passed residential construction spending for the first time (since the Census Bureau started tracking spending).

Nonresidential spending has been strong as builders complete projects, but there is substantial evidence of a looming slowdown - less lending for new projects, less work for architects - and the expected slowdown in non-residential spending will happen in the 2nd half of 2008.