ANALYSIS:US August Construction Spending Up 0.5%; Homes +0.4%>

--Total Private Spending Increased 0.4%; Public +0.7%

--July Construction Rev Down To -1.2%;June Revised Up to -0.8%

By Sara Haire and Holly Stokes

     WASHINGTON (MNI) - Construction spending was up 0.5% in August, 

with a 0.4% increase in private construction and a larger 0.7% increase 

in public construction, data released by the Commerce Department Monday 

morning showed. 

     Analysts had expected construction spending to rise 0.4% after a 

negative 0.6% reading for July. With the latest data, July construction 

was revised down to a 1.2% decrease, while June spending was revised up 

slightly to a more moderate 0.8% decrease from the 1.4% decline 

previously reported. 

     Private residential construction spending rose 0.4% in the month, 

with new home building rising 0.4% based on an MNI calculation. 

Single-family building rose 0.3%, while multi-family building saw a 

larger rise of 0.9% from the previous month. Residential construction 

excluding new homes, which captures remodelling was up 0.5% and up 15.8% 

year-over-year.  

     Private nonresidential construction was up 0.5% in August. There 

were increases in all categories, with the exception for a small decline 

of 0.5% in communication, and a larger 4.3% decline in manufacturing. 

     Public construction saw a increase of 0.7% in August, following a 

3.3% drop in July. State and local government spending, the much larger 

portion of public construction, was up 1.1% after a 3.4% decrease in 

July, while Federal government construction saw a decline of 4.7% in 

August after a 2.8%% fall in July. 

     In a statement released by the Commerce Department Monday morning 

with the construction data, they clarified that Hurricane Harvey 

impacted construction activity in Texas only for the last week in August 

and Irma did not have an impact until September. The only data that will 

be captured in the estimates for single family residential construction 

will be from storm rebuilds, not repairs, and only if it is 100% 

rebuilt. Annual estimates of private nonresidential construction by 

state show that Florida and Texas together represented about 22% of 

spending in 2016. 

     ** MNI Washington Bureau: 202-371-2121 ** 

     [TOPICS: MAUDS$,M$U$$$,MAUDR$,MT$$$$]