Private nonresidential construction in July 2008 ended its monthly streak of consecutive record highs, according to the Sept. 2 construction spending report by the U.S. Department of Commerce.  For the first time in seven months, activity fell .6 percent to $416.8 billion, slightly down from the revised figure of $419.8 billion in June, but 16 percent higher than the volume of construction spending recorded in July 2007.  

Of the 16 subsectors of total nonresidential construction, 13 produced year-over-year gains, including manufacturing (up 56 percent), lodging (up 29.8 percent) and public safety (up 25.2 percent). From the period of June 2008 to July 2008, transportation spending led the way (up 3.8 percent) and public safety followed (up 3.2 percent). 

By contrast, construction related to religious structures declined (down 14.8 percent) compared to twelve months earlier, communications-related construction also fell (down 2.1 percent) and commercial, such as retail construction, was lower (down .9 percent). On a monthly basis, from June 2008 to July 2008, five subsectors recorded declines in construction value, including manufacturing (down 5 percent), religious (down 2.5 percent), power (down  2.2 percent), communication ( down1.7 percent) and lodging (down 0.1 percent).

While July private nonresidential construction was .6 percent lower than June’s tally, public nonresidential construction increased 1.4 percent. Still, dragging down the construction spending index was the private residential construction sector. Housing activity fell 2.3 percent since June 2008, and 27.5 percent since July 2007, marking its lowest level in seven years.