The U.S. construction sector saw a significant boost in spending during June 2023, reaching an estimated seasonally adjusted annual rate of $1,938.4 billion. This figure represents a 0.5% increase compared to the revised May estimate of $1,929.6 billion.
The latest data from the U.S. Census Bureau indicates that the construction industry's growth continues to strengthen, with the June 2023 spending level surging 3.5% higher than the June 2022 estimate of $1,873.2 billion.
Image: U.S. Census Bureau
During the first half of 2023, construction spending amounted to $917.4 billion, marking a promising 3.0% rise compared to the same period in the previous year, which recorded $890.4 billion in spending.
Spending on private construction also experienced a positive trajectory in June 2023. It reached a seasonally adjusted annual rate of $1,516.9 billion, surpassing the revised May estimate of $1,509.4 billion by 0.5%.
Residential construction, a crucial component of the private sector, witnessed a noteworthy increase to a seasonally adjusted annual rate of $856.3 billion in June 2023, marking a 0.9% rise from the revised May estimate of $848.6 billion.
Nonresidential construction remained relatively stable in June, with a seasonally adjusted annual rate of $660.6 billion, almost unchanged from the revised May estimate of $660.8 billion.
In June 2023, public construction spending also experienced a modest uptick. The estimated seasonally adjusted annual rate of public construction spending was $421.4 billion, reflecting a 0.3% increase compared to the revised May estimate of $420.2 billion.
Educational construction, an essential component of public spending, recorded a slight decline, with a seasonally adjusted annual rate of $88.9 billion in June 2023, 0.1% lower than the revised May estimate of $89.0 billion.
Similarly, highway construction spending also experienced a slight dip, with a seasonally adjusted annual rate of $128.6 billion in June 2023, marginally lower than the revised May estimate of $128.6 billion.
The construction industry's steady growth in 2023 is an encouraging sign for the U.S. economy, as it plays a vital role in generating jobs and supporting various sectors. Analysts and policymakers will closely monitor these developments to gauge the overall economic health and potential future growth prospects.
