For the second month in a row, private nonresidential construction spending slipped – falling 1.2 percent in July – according to the September 1 report by the U.S. Census Bureau. On a year-over-year basis, private nonresidential construction spending is down 8.3 percent. Total nonresidential construction spending, including both private and public, fell by 1.0 percent from June and 2.6 percent from the same time last year to $703.8 billion (see graph below).
Just three subsectors increased on a monthly basis: water supply construction, up 4.0 percent, religious-related construction, up 1.4 percent and manufacturing construction, up 1.0 percent. From July 2008, manufacturing construction is up 46.5 percent, public safety-related construction is 14.8 higher and power construction is up 10.0 percent.
Subsectors with the largest losses in spending from June 2009 include lodging construction, down 8.3 percent, commercial construction, down 1.8 percent and power construction, down 1.8 percent. Subsectors posting the largest year-over-year declines include lodging construction, down 35.4 percent, commercial construction, down 32.4 percent and communication-related construction, down 20.1 percent.
Meanwhile, residential construction spending increased 2.3 percent from June, but is still down 26.9 percent from a year ago. Overall, total construction spending inched down 0.2 percent from June and is down 10.5 percent from July 2008.