Following two months of declines, U.S. construction spending in September rose 0.6 percent above the revised August figure of $846.2 billion, according to a release sent today by the U.S. Census Bureau and the U.S. Department of Commerce. Total construction spending last month totaled $851.6 billion, which also marks a 7.8 percent year-over-year gain.
Broken down, total residential construction posted a seasonally adjusted annual rate of $292.2 billion – a 2.7 percent month-over-month increase and a 19.2 percent year-over-year climb. Total non-residential construction, which includes office, transportation, religious and health care construction, ticked in at $559.4 billion – a 0.4 month-over-month decrease, but a 2.6 year-over-year gain.
In terms of employment, as previously reported, September saw a decline in 160 out of 337 American cities surveyed. And even with the damage incurred by Hurricane Sandy this week, reconstruction projects would have a minimal effect on the employment numbers, according to the Associated General Contractors of America.
As The Real Deal previously reported, construction spending fell by the largest amount in a year in July – the first decline since February 2012 – mainly because consumers stopped commissioning home improvement projects. The figure fell again in August.
However, due to an increase in demand for luxury housing, as well as increases in non-residential activity and government investment, annual construction spending in New York City is expected to surpass the $30 billion mark for the first time since 2008. – Zachary Kussin