Nonresidential construction spending was down 0.2% in July, according to an Associated Builders and Contractors (ABC) analysis of U.S. Census Bureau data published today. The dip is likely due to high interest rates and work interruptions from extreme weather, like Hurricane Beryl, said ABC Chief Economist Anirban Basu.
Key takeaways include:
- On a seasonally adjusted annualized basis, nonresidential spending totaled $1.21 trillion.
- Spending was down on a monthly basis in 11 of the 16 nonresidential subcategories.
- Private nonresidential spending decreased 0.4%, while public nonresidential construction spending was up 0.2% in July.
“Less than half of contractors expect their sales to increase over the next six months, according to ABC’s Construction Confidence Index, a clear indication that the industry is eagerly awaiting lower interest rates,” said Basu. “Fortunately, it’s all but certain that the Federal Reserve will begin lowering rates at its September meeting. The remaining question is whether it will be a 25- or 50-basis point cut.”
Spending was down on a monthly basis in 11 of the 16 nonresidential subcategories.Associated Builders and Contractors
