Not only are housing starts up in June, as evidenced by our past
blog, but the total spending on construction is also up for
that month as the final numbers were recently reported. For the
third straight month spending increased for all forms of
construction nationwide. In May we realized the largest gain
month-over-month since December which came to a 1.6% increase in
spending, according to the Commerce Department. For June, however,
there was still an increase which is a sign of a recovering housing
industry, but of 0.4%.
February of 2011 represented a twelve-year low when it comes to
construction spending. After Junes figures were finalized and
brought to the public eye, the total spending accounted for $842.1
Billion, up 12.9% from that twelve-year low. From a housing
perspective, June bolstered the construction industry by 1.3% and a
boost in spending as such was the fifth time this year that a month
has shown improvements. This gain, looking solely to housing, meant
a $265.6 Billion spending total for all of 2012 thus far.
Nonresidential building projects showed a $302.3 Billion annual
rate, or 0.1% climb, and there were comparable improvements in the
hotel and office construction industries. However, the spending on
shopping centers and malls proved to be in a slight decline. For
Government building initiatives, there was not much to report on in
terms of changes, and the annual sum of this sector totaled $274.2
Billion at the end of this past June. With the vast majority of
industries looking to build all of a sudden, whether it be for
private use such as a home or public use such as an office
building, the flood gates appear to have opened with nothing but
confidence and optimism for the future pouring out.
More Information: USA Today