Construction spending during June 2009 was estimated at a seasonally adjusted annual rate of $965.7 billion, 0.3% above the revised May estimate of $963.2 billion and 10.2% below the June 2008 estimate of $1,075.6 billion. During the first six months of 2009, construction spending reached $455.6 billion, 11.4% below the $514.4 billion for the same period in 2008.
Residential spending held steady in June versus May. Residential construction increased slightly from $252.1 billion in May to $253.8 billion in June. It had been falling fairly steadily since January, and remains 29.3% off June 2008.
Nonresidential construction is holding steady. Private nonresidential construction declined from about $400.0 billion in May to nearly $397.9 billion in June. This represents a nearly 5% decrease from June 2008, however. Public construction in June was up 0.9% over May 2009 ($314.1 billion over $311.1 billion), and up 5.1% over June 2008.
LightNOW’s take: The residential construction market may be stabilizing. Private nonresidential construction appears to be softening, while public nonresidential construction is beginning an upturn due to stimulus funding of projects.
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