Delayed by 42 days because of the government shutdown, the Census presented their August construction spending report this week. The overall construction in August bounced back a bit, 0.2 percent, above the revised July estimate. However it is 1.6 percent below the August 2024 estimate.
Looking at private construction projects, spending rose 0.3% in August compared to July. Residential construction remains in the positive, with a reported 0.8% increase in investment. However a report from Reuters suggested, “But outlays on new single-family housing projects dropped 0.4%. Spending on multi-family housing units, which account for a small share of the housing market, rose 0.2%.” They propose that remodeling likely made up most of the market spending, which is supported by a new NAHB construction report.
As mortgage rates decline we hope that residential construction will continue on a upward trajectory. The date for the Census to release the September and October reports is still to be determined. The next scheduled report is for November which will be released on January 2, 2026.
