Construction spending up in July

Construction spending in July reached its highest level in 5 ½ years according to data released by the U.S. Commerce Department. Spending on both private and public construction projects rose 1.8 percent from June to a seasonally adjusted rate of $981.3 billion nationwide.

The July numbers reflect 8.2 percent growth from the same time last year, when the Commerce Department estimated construction spending of $906.6 billion.

The increase was the largest since May 2012 and followed June’s 0.9 percent decline in spending.

Private construction, the largest contributor in construction spending, reached a seasonally adjusted annual rate of $701.7 billion, 1.4 percent higher than in June and the highest level since November 2008. Residential construction accounted for $358 billion in spending for the month.

Public sector construction spending jumped 3 percent from the month before, reaching $279.6 billion in July, driven by work on state and local government projects. Highway construction spending rose 6.9 percent for the month above its June level while educational construction rose 1.6 percent for the same period.