Today, the U.S. Census Bureau released their July read of construction spending showing near-trough level spending for residential construction with a continued slowing trend while indicating a slight monthly increase in non-residential spending.With this months release it's plain to see that residential construction spending is trending similarly to other measures of performance for the residential housing markets reverting back down to the the worst levels seen in early 2009.
It's likely that with the end of the government's housing tax credit scam, this reversion will turn into real additional declines below the worst levels seen to date as the nation's housing markets resume the hideously weak "organic" trends seen prior to the government chicanery.
On a month-to-month basis total residential spending declined 2.6% while remaining just 1.26% above the level seen in July 2009 and a whopping 64.48% below the peak level seen in 2006 while single family construction spending is down roughly 75% over the same period.
Also, while non-residential spending increased slightly since June the level remains 28.3% below July 2009 and a whopping 37.58% below the peak level reached in October 2008.
The following charts (click for larger dynamic 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, month-to-month and peak percent change to each since 1994 and 2000 – 2005.
