Construction spending this year is up 4.1 percent from last year, according to new data for September.
During the first nine months of the year, some $1.058 trillion has been put toward public and private construction, compared with $1.016 trillion for the same period in 2019.
The housing sector powered the gain, though growth tapered off in September.
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Construction spending for the month was estimated to be $1.4 trillion, seasonally adjusted, which is a marginal 0.3 percent gain from August, according to the Census Bureau’s monthly report.
September’s spending represents a 1.5 percent year-over-year increase from $1.39 trillion in 2019.
Private residential construction was once again responsible for the majority of construction costs — and the only sector tracked by the report that saw month-over-month growth. Private homebuilders’ work was estimated at $610 billion in September, seasonally adjusted, up 2.8 percent from August’s $594 billion.
Sentiment among homebuilders hit an unprecedented high level last month, though buyer demand for newly built homes waned. Home prices continue to climb, however, amid record low levels of inventory. Housing starts in September were up 2 percent from August and 11 percent year-over-year.
Nonresidential private construction totaled $464 billion in September, down 1.5 percent from August’s estimated $471 billion. Public construction spending was also down with a total spend of $339 billion. That’s a drop of 1.7 percent from August’s $344.8 billion.