MNI DATA ANALYSIS: US August Construction Up 0.1%>

--Private Residential Spending -0.7%; Nonresidential -0.2%

--Public Construction Spending +2.0%

By Shikha Dave and Harrison Clarke

     WASHINGTON (MNI) - Construction spending rose by 0.1% in August, 

below the 0.5% gain expected, as residential construction saw declines 

but nonresidential construction saw gains. Nonresidential rose by 0.7% 

compared to a residential construction decline of -0.7%, data released 

by the Commerce Department Monday morning showed. 

     Analysts surveyed by MNI had expected total construction spending 

to rise by 0.5% after a gain of 0.1% in July. July was revised up to 

0.2%, June construction was revised up to -0.7%, while May was unrevised 

at +0.7%.   

--PRIVATE BUILDING DECLINES    

     Private residential construction fell by 0.7% in the month, 

following a 0.2% gain in July. Home building ex. new homes, also known 

as remodeling, saw a 0.6% decline, according to an MNI calculation. 

     Also based on an MNI calculation, total new homes fell by 0.8%. 

Single-family building was down 0.7%, and multi-family building posted a 

1.7% decline. 

     In addition to the decline in private residential, private 

nonresidential construction fell by 0.2% in August, driving the decline 

in total private construction. The main drivers of the category were 

decreases in commercial (-0.9%), power (-1.3%), and manufacturing 

(-0.7%). 

--PUBLIC CONSTRUCTION SEES GAINS

     Following an upward July revision to a 1.7% gain, public 

construction spending rose 2.0% in August. 

     The rise in public construction was driven by a 9.1% gain in 

offices, a 3.7% rise in amusement and recreation, and a 4.3% gain in 

water supply. 

     State and local construction rose 1.7% in the month. Federal 

construction was also up 5.9%. 

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

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