Real Construction Spending Slows - Up 1.0%

According to the Census Bureau, the value of construction put in place in June 2013 was $79,877 (millions of real dollars). This was an increase of 1.0% from June 2012. Real construction spending has grown month-over-month since January 2012. However, the rate of month-over-month growth has slowed in 2013. The month-over-month rate of growth in June was the slowest since realy construction spending began growing in January 2012. The annual rate of change is still growing, but it has grown more slowly for six straight months.

Real construction spending is linked very closely to real consumer spending. With consumer spending growing more slowly for almost two years one would expect real construction spending to grow more slowly through at least the remainder of 2013.

Real construcion spending is agood leading indicator for construction materials, hardware, and HVAC industrial production.