Private nonresidential construction spending inched down in August, according to the Oct. 1 report by the U.S. Department of Commerce. Spending totaled $415.95 billion in August, which despite the decline in July, was still 13 percent higher than the level of construction recorded in August 2007. Overall, total nonresidential construction spending reached $720,459 billion, or a 10.7 percent increase from August 2007 (see graphic below).

Of the 16 subsectors that comprise total nonresidential construction, 12 produced year-over-year gains, including manufacturing (up 61.5 percent), lodging (up 29.3 percent) and public safety (up 22.5 percent). In terms of gains from July 2008 to August 2008, highway and street spending led the way (up 3.8 percent) and lodging increased (up 2.1 percent). 

In contrast, communications-related construction decreased from one year ago (down 11.2 percent), religious structures also fell (down 7.6 percent), commercial, such as retail construction, posted lower (down 4.9 percent) and amusement and recreation construction decreased (down 4.2 percent). From the period of July 2008 to August 2008, 12 subsectors recorded spending declines including communication (down 4.9 percent), public safety (down 3.4 percent), waste disposal (down 3.2 percent), amusement and recreation (down 2.8 percent), religious (down 2.1  percent), power (down 1.8 percent), sewage and water supply (down 1.1 percent), commercial (down 0.6 percent), transportation (down 0.6 percent), conservation and development (down 0.5 percent) and manufacturing (down 0.3 percent).

Public nonresidential construction was up 0.8 percent in August, compared to the previous month, and has increased 7.7 percent year-over-year.  Residential private construction has increased slightly since July yet continues to post large declines year-over-year. However, that sector’s construction value is up 0.3 percent since July 2008, but down 28.4 percent since August 2007.