U.S. August Construction Spending - Housing trend turning positive
August construction spending, originally scheduled to be released in early October, has now been released, and is on the firm side of expectations, August marginally with a 0.2% increase, but July was revised to a 0.2% rise from -0.1% and June significantly to a 0.5% rise from a 0.4% decline.
The June revisions lifts the start of Q3 relative to Q2’s average and the latest data thus gives further support to estimates for the delayed Q3 GDP release.
The latest data shows trend starting to pick up with three straight gains, supported by expectations for Fed easing, after trending negatively from June 2024 through May 2025.
The turnaround is clearest in private residential spending, with a 0.8% gain after positives in revised June and July data. Private non-residential spending is still trending negatively with a 0.3% drop. Public construction was unchanged, but trend is still marginally positive.
