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Construction spending was flat in June

Published on 8 Comments on Construction spending was flat in June

Construction spending continues to be flat over the past few months:

The good news is that residential construction isn't falling anymore. The bad news is that nonresidential construction isn't rising anymore. We are just puttering along waiting for either something or nothing to happen later this year.

8 thoughts on “Construction spending was flat in June”

    1. rick_jones

      Yeah, a "Total" line would have been good.

      Doesn't look like the chart to which you linked did inflation-adjustment though.

  2. lawnorder

    Okay, we note that construction spending is neither rising nor falling. Is the current rate of construction sufficient to meet the demand? If so, it should not rise. If it more than meets demand, it will fall.

  3. Ken Rhodes

    Is construction seasonal? More particularly, are either or both of those general categories seasonal?

    My guess is that residential is seasonal, non-residential is (at most) only slightly seasonal. Those are intuitive guesses; I don't have data. If there is seasonality built into the construction industry, then it seems like the graphs ought to be adjusted for it.

    1. middleoftheroaddem

      Ken Rhodes - in some parts of the US, particularly areas that have cold winters, construction is seasonal.

      For example, some locations will not allow the movement of dirt during winter months: similarly, exterior work, under difficult weather, tends to decline during the winter.

      1. Ken Rhodes

        Those specifics you cite are clearly correct. On the other hand, I suspect that large non-residential projects, which frequently overlap several years, involve a lot of advance planning to get the outside work scheduled when the season is suitable for that, and the inside work scheduled during the parts of the year when outside work is not so suitable.

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