Yesterday, the U.S. Census Bureau released their July read of construction spending again demonstrating the significant extent to which private residential construction is contracting particularly for single family structures while non-residential spending continued to grow essentially in-line with its recent expansion.With the tremendous weakening trend continuing, total residential construction spending fell 27.51% as compared to July 2007 and 47.10% from the peak set in March 2006.
Worse off though was private single family residential construction spending which declined 40.91% as compared to July 2007 and a truly grotesque 60.34% from the peak set in February 2006.
Non-residential construction spending, currently accounting for just under half of all private construction spending, remains the only pillar of strength gaining 16.01% as compared to July 2007.
As was noted in prior posts, commercial real estate (CRE) appears to be coming under some pressure with reports of increasing vacancy rates and falling prices.
Keep your eye on the last chart in the months to come for a clearer indication of a pullback.
The following charts (click for larger versions) show private residential construction spending, private residential single family construction spending and private non-residential construction spending broken out and plotted since 1993 along with the year-over-year and peak percent change to each since 1994 and 2000 – 2005.
