In a sign that the economy is still in a slump, private nonresidential construction spending slipped 0.4 percent in July, according to the September 1 report by the U.S. Census Bureau.  However, private nonresidential construction spending is 5.7 percent higher from the same time last year. Total nonresidential construction spending – which includes both privately and publicly financed construction – was $533.7 billion in July, down 1.1 percent for the month and down 1.7 percent from July 2010 (see graph below).

Eleven construction subsectors posted decreases for the month including manufacturing, down 6.2 percent; conservation and development, 5 percent lower; and public safety, down 4 percent.  Construction subsectors with the largest decreases on a 12-month basis were lodging, down 24.6 percent; religious, 20.8 percent lower; and sewage and waste disposal, down 13.7 percent.

In contrast, five of the sixteen construction subsectors posted increases for the month, including water supply, up 3.9 percent; religious, 2.3 percent higher; and commercial, up 2.2 percent. Four construction subsectors saw increases in construction spending from the same time last year including power, up 19.1 percent; commercial, 15.1 percent higher; health care, up 1.2 percent; and communication, 0.9 percent higher.

Public nonresidential construction spending fell 1.9 percent in July and is down 25.4 percent year-over-year. Meanwhile, residential construction spending dipped 1.6 percent lower for the month, but is up 4.1 percent compared to the same time last year. Overall, total construction spending decreased 1.3 percent in July, but is up 0.1 percent compared to July 2010.