Construction spending increased again in June, with month-to-month growth across both residential and nonresidential sectors, even as demand for construction supplies such as metals was mixed.
Private residential spending was at a seasonally adjusted annual rate of $856bn, according to the most recent data from the US Census Bureau. That is 0.9pc higher than May's revised rate of $849bn and the highest monthly total of 2023 so far. June 2023 spending was still 10.4pc below June 2022 levels as aggressive interest rate hikes from the Federal Reserve in the last 16 months have restricted any rebound in home building activity after a slowdown in 2022 and much of 2023.
Spending on single-family home construction was at $379bn in June, 2.1pc higher than May's revised rate of $371bn but still 21.5pc below June 2022. Multi-family construction spending for June was at $132bn, 1.5pc higher than May's revised rate of $130bn and 21.8pc higher year-to-year.
The next active Comex (CME) copper price average averaged $3.7992/lb in June, up by 1.2pc from May's average. The average remained below $4.00/lb for a third consecutive month and June 2023 was 7.8pc below the June 2022 average.
US rebar fell to an average midpoint of $918/short ton in June from $935/st in May and $1,098/st in June 2022 as demand stagnated and raw materials costs remain low.
Nonresidential spending
Private nonresidential spending's seasonally adjusted annual rate of $661bn was virtually flat compared to May's revised rate and 20.9pc higher than June 2022.
Manufacturing spending extended its month-to-month growth, with June's rate of $195bn being 0.3pc higher than May's rate and 80.7pc higher year over year. Commercial spending was at a rate of $121bn in June, 0.1pc higher than May's rate and 3.7pc higher year over year.
Total private construction spending stood at a rate of $1.517 trillion in June, 0.5pc higher than the revised May rate and 1pc higher than June 2022.
Public construction spending was at a rate of $421bn for June, 0.3pc higher than May and 13.6pc higher year over year.
Spending on the water supply grew to a rate of $25bn in June, 1pc higher than May's rate and 5.4pc higher than June 2022. June's sewage and waste disposal spending was at a rate of $39bn, 1.6pc higher than May and 23.3pc higher year over year.
Highway and street spending was at a rate of $129bn in June, down 0.1pc from May's rate but still 20.4pc higher than June 2022.
Total construction spending was $1.938 trillion for June, 0.5pc higher than May and 3.5pc higher than June 2022.
