In a bit of unexpected news, nonresidential construction spending, which includes both privately and publicly financed construction, was $553.1 billion in August, up 1.6 percent for the month and 0.1 percent higher from one year ago, according to the October 3 report by the U.S. Census Bureau (see graph below).

Private nonresidential construction spending inched up 0.2 percent in August and is 5.6 percent higher from one year ago. Public nonresidential construction spending was 3 percent higher for the month – the largest monthly increase since February 2009 – but was down 5.8 percent compared to the same time last year.

Meanwhile, twelve of the sixteen nonresidential construction subsectors posted increases for the month, including conservation and development, up 6.5 percent; public safety, 5.3 percent higher; sewage and waste disposal, up 4.5 percent; and highway and street, 3.6 percent higher.  Five subsectors experienced growth in construction spending from August 2010: power, up 21.5 percent; commercial, 9.1 percent higher; conservation and development, up 6.5 percent; health care, 3.3 percent higher; and manufacturing, up 2.9 percent.

In contrast, four construction subsectors had decreases in spending for the month: lodging, down 5.6 percent; communication, 3.7 percent lower; commercial, down 2.7 percent; and health care-related construction, 0.3 percent lower.  Eleven subsectors experienced reductions in construction spending over the last twelve months including lodging, 28.6 percent lower; religious, down 16.9 percent; sewage and waste disposal, down 13.2 percent; water supply, down 12 percent lower; and amusement and recreation, down 11.6 percent.

Residential construction spending increased 0.9 percent for the month, and is up 2.9 percent over the last twelve months. Overall, total construction spending – which includes both nonresidential and residential – rose 1.4 percent in August, and is up 0.9 percent compared to August 2010.