US construction spending rose slightly in September, with spending on highways and streets higher. Still, asphalt prices declined.
Total highway and street spending rose by 0.4pc in September from August to a seasonally adjusted annual rate of about $141.95bn, according to the latest data from the US Census Bureau. This was 1.5pc above September 2023 levels.
Despite the increase in highway spending, wholesale asphalt prices in the US midcontinent hit a four-year low for September on excess supply and subdued demand.
Midcontinent railed asphalt prices dropped by $45/st for September delivery to $290-$320/st from August. Waterborne prices in the region saw a similar, $45/st decrease to $300-$335/st.
The sharp decline stemmed from turnaround activity beginning in late August at BP's 435,000 b/d Whiting, Indiana, refinery which boosted supplies as adverse weather in the southeastern US stifled wholesale demand.
The National Weather Service reported above-average precipitation from Louisiana to Virginia in September with Tennessee seeing its fourth wettest September on record.
Hurricane activity in early July and late September also impacted demand for the month with construction firms reporting lower third quarter product shipments because of extreme weather conditions.
- Total spending was up 7.3pc through the first nine months of 2024 compared to the same period in 2023.
- Private construction spending was supported by residential investment while nonresidential spending fell.
- Manufacturing spending fell while commercial spending rebounded from August, reversing previous month's trends.
- Spending on water supply continues to grow.
| US Construction Spending | $mn | ||||
| 24-Sep | 24-Aug | +/-% | 23-Sep | +/-% | |
| Total Spending | 2,148,805.0 | 2,146,048.0 | 0.1 | 2,055,216.0 | 4.6 |
| Total Private | 1,653,624.0 | 1,653,160.0 | 0.0 | 1,592,388.0 | 3.8 |
| Private Residential | 913,632.0 | 912,186.0 | 0.2 | 877,629.0 | 4.1 |
| Private Manufacturing | 234,302.0 | 234,803.0 | -0.2 | 194,941.0 | 20.2 |
| Private Commerical | 119,191.0 | 118,927.0 | 0.2 | 139,861.0 | -14.8 |
| Total Public | 495,182.0 | 492,888.0 | 0.5 | 462,829.0 | 7.0 |
| Public Water/Sewage | 76,805.0 | 76,462.0 | 0.4 | 69,634.0 | 10.3 |
| Public Highway/Road | 141,049.0 | 140,349.0 | 0.5 | 138,694.0 | 1.7 |
| US Census Bureau | |||||
