According to the U.S. Census Bureau, construction spending during September 2023 was estimated at a seasonally adjusted annual rate of $1,996.5 billion, 0.4% (±1.2%) above the revised August estimate of $1,988.3 billion.
The September figure is 8.7% (±1.8%) above the September 2022 estimate of $1,836.9 billion. During the first nine months of this year, construction spending amounted to $1,463.5 billion, 4.6% (±1.2%) above the $1,398.9 billion for the same period in 2022.
In September, the estimated seasonally adjusted annual rate of public construction spending was $440.6 billion, 0.4% (±2.1%) above the revised August estimate of $438.7 billion.
- Highway construction was at a seasonally adjusted annual rate of $131.1 billion, 0.2% (±5.3%) below the revised August estimate of $131.4 billion.
- Educational construction was at a seasonally adjusted annual rate of $94.4 billion, 1.9% (±2.5%) above the revised August estimate of $92.7 billion.
Spending on private construction was at a seasonally adjusted annual rate of $1,555.9 billion, 0.4% (±0.7%) above the revised August estimate of $1,549.6 billion. Residential construction was at a seasonally adjusted annual rate of $872.0 billion in September, 0.6% (±1.3%) above the revised August estimate of $866.6 billion. Nonresidential construction was at a seasonally adjusted annual rate of $683.9 billion in September, 0.1% (±0.7%) above the revised August estimate of $683.0 billion.
“It is encouraging that most categories of construction, including homebuilding, are growing,” said Ken Simonson, Associated General Contractors of America chief economist. “But the numbers would be even more impressive if the industry didn’t have so many unfilled job openings.”
“Nonresidential construction spending increased for the 16th straight month in September,” said Associated Builders and Contractors (ABC) Chief Economist Anirban Basu. “While some private categories, including power, commercial and amusement and recreation saw healthy month-over-month increases, publicly financed construction accounted for more than 72% of September’s rise. Given increased federal infrastructure spending and exorbitant financing costs for private construction, that dynamic should remain firmly in place over the coming months.
“Despite a small decrease in spending in September, manufacturing construction remains the nonresidential sector’s outperformer,” said Basu. “Spending in the category is up 62% over the past year and accounts for nearly 43% of the year-over-year increase in nonresidential construction put in place. With several industrial megaprojects ongoing, spending in the manufacturing segment will remain elevated for several quarters.”