Construction Spending Increases A Tenth Of A Percent In July

Dated: September 5 2018

Views: 319

House


The U.S. Census Bureau of the Department of Commerce announced that construction spending during July 2018 was estimated at a seasonally adjusted annual rate of $1.32 billion, 0.1% above the revised June estimate of $1.31 billion.


The July figure is 5.8% above the July 2017 estimate of $1.24 billion.


Spending on private construction was at a seasonally adjusted annual rate of $ $1,010.9 billion, 0.1% below the revised June estimate of $1,011.9 billion.


Of that, residential construction was at a seasonally adjusted annual rate of $560.1 billion in July 0.6% above the revised June estimate of $556.7 billion.


However, July’s National Association of Home Builders/Wells Fargo Housing Market Index report indicated builder confidence in the market for newly-built single-family homes remained unchanged at 68 points.


The report states that although Homebuilders are encouraged by the growing housing demand, construction material costs still continue to hinder optimism.


This proves to be true, as August’s Housing market index revealed a starker truth.


According to the report, concerns about market affordability contributed to homebuilder confidence falling one point to 67 in August, which is its lowest in level in 2018.


NAHB Chief Economist Robert Dietz said builders are monitoring how tariffs and the impending trade war are affecting key building material prices, including lumber.


“The good news is that builders continue to report strong demand for new housing, fueled by steady job and income growth along with rising household formations,” NAHB Chairman Randy Noel said. “However, they are increasingly focused on growing affordability concerns, stemming from rising construction costs, shortages of skilled labor and a dearth of buildable lots.”


Source

Blog author image

Mark Ross

For Mark Ross, founder of Ross NW Real Estate and professional real estate broker, real estate has always been the career of choice. During his 30 years in the industry, Mark has gained experience in ....

Latest Blog Posts

6 Projects To Banish Boredom From Your Yard

We're all about indulging in Starbucks' latest seasonal concoction or this season's "it" bag. (OK, maybe a knockoff version of this season's "it" bag.) Trends are just plain fun — and they keep

Read More

How To Renovate Tight Living Quarters Without Cutting Corners

If you live in a small space, you’re used to having to come up with clever solutions to maximize your home’s potential. So whether you’re looking to renovate a studio apartment or small house,

Read More

Are You Making One Of These 7 Landscaping Mistakes

You can just picture it: a pretty cottage garden overflowing your front yard, with tons of heavy, scented blooms.Well, at least you can picture it with your eyes closed. With your eyes open all you

Read More

Fannie And Freddie Set Dates For Their New Refi Option

The Federal Housing Finance Agency didn’t have a set date for its new refi option targeted to low-income borrowers when it announced the program last week. But on Wednesday, both Fannie Mae and

Read More