August 2023 Construction Spending Update

August 2023 Construction Spending Updates:

Overall Construction Put in Place was up 0.5% in June 2023 and up 3.5% over the last year. In April, the annual growth number was 7.2%. In general, it appears the growth rate is leveling off.
Note that inflations, specifically material prices, have also leveled off in the last year. The overall slowing of construction put in place growth is likely due as much to moderating inflation as it is to slower growth of construction activity.
Nonresidential monthly growth from May to June was only 0.1%. This was below the growth rates seen in the winter and spring and indicates the market is leveling off.
Residential spending grew by nearly 1% in June. The single-family market appears to have bottomed in April 2023 while multi-family remains strong. Despite high interest rates, residential new construction appears very strong from a historical perspective.