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Construction Spending in June Grows at Fastest Rate Since 2006

August 06, 2015, 07:15 AM
Filed Under: Construction

Construction spending in June recorded the highest year-over-year growth rate since 2006, according to an analysis by the Associated General Contractors of America. Association officials cautioned, however, that those spending gains could be at risk unless all levels of government strengthen programs to develop the construction workforce.

“Spending rose strongly in June from a year ago for all major construction categories—private nonresidential, residential and public,” said Ken Simonson, the association's chief economist. “Although the initial estimate for June showed minimal growth from May, totals for May and April were revised upward by large amounts.”

Construction spending in June totaled $1.065 trillion at a seasonally adjusted annual rate, 12 percent higher than in June 2014, Simonson said. He noted that the year-over-year growth rate was the strongest since March 2014, indicating a faster pace of construction spending overall. The June total was the highest level since July 2008 and was 0.1 percent higher than the May total following an upward revision of $28 billion in that figure. The April total was also revised higher, by $18 billion.

Private nonresidential spending in June decreased 1.3 percent from May but rose 15 percent from a year earlier, while private residential spending increased 0.4 percent for the month and 13 percent over 12 months. Public construction spending rose 1.6 percent from the month before and 8.0 percent from 12 months earlier.

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