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new census figures show marginal early summer increase in varied construction sectors

8/19/2020

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While overall construction spending declined in June by $9.5 billion, nine out of 16 nonresidential construction sectors saw gains ranging from 0.1% to 3.6%.

Those figures in the U.S. Census’ Monthly Construction Spending report represent treasured bright spots in an otherwise declining national picture that saw construction spending slip from $1.364.7 billion in May to $1.355.2 billion in June.

The most significant sector declines saw educational construction off by 2.2%; highway and street construction down by 1.7%; and commercial construction with a decrease of 1.3%.

The largest sector increase was recorded in sewage and waste disposal construction, which posted a healthy 3.6% gain; conservation and development work, up by 3.3%; and healthcare and manufacturing, both up by 1.7%.

The Census report notes that total construction figures for June were actually up by 1.5% over June of last year, while the six-month early year average from 2019 was up by 1.9%.

The report additionally showed private construction with a dollar value of $534.2 billion, “below the revised May estimate of $542.1 billion.”

Public construction numbers, which have been lower throughout the year compared to private construction, stood at $353.3 billion in June. That’s a decline of $2.5 billion from May’s $355.8 billion.
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The next Census construction spending report is scheduled to be released on September 1.

By Garry Boulard

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