Construction Spending Growth Slowest since June '13

(Negative) The real value of construction put in place in August 2016 was $106,723 (millions of real dollars). While this was the highest value of construction put in place since September 2015, compared with one year ago spending in August was up just 2.3 percent. That was the slowest rate of growth since June 2013. The month-over-month rate of growth has decelerated substantially since September 2015, falling to 2.3 percent from 25.2 percent. As a result, the annual rate of growth decelerated for the fifth straight month to 12.7 percent, which was the slowest rate of growth since June 2015. This trend will continue in the upcoming months.

Residential construction spending is slowing as well. Month-over-month growth decelerated to 3.9 percent in August, which was the slowest rate of growth since March 2012. The annual rate of growth, now 15.8 percent, has decelerated eight months in a row and was the slowest since May 2015. 

Real construction spending is a good leading indicator for construction materials, hardware, and HVAC industrial production.