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Construction Spending Up 3.8% in 201702-10-18 | Economic News

Construction Spending Up 3.8% in 2017
10.4% Increase in Residential Construction Spending

An analysis from the Well's Fargo Economics Group suggests, "U.S. construction spending gained momentum in the second half of 2017."

The U.S. Census Bureau released its annual report on national construction spending, based on information received from its monthly "Value of Construction Put in Place Survey."

This survey covers construction work done each month on new structures or improvements to existing structures for private and public sectors. Data estimates contain the cost of labor and materials, cost of architectural and engineering work, overhead costs, interest and taxes paid during construction, and contractor's profits.

According to the information acquired, 2017 saw an increase of approximately $45 million over 2016, in total spending on private and public construction projects - this is a total rise of 3.8%.

The total amount spent on construction projects in 2017 is estimated to be $1.23 billion. It was $1.185 billion in 2016.

Residential and commercial construction expenditures saw the most growth in 2017, with an increase of 10.4% and 13.5% respectively.

Overall, nonresidential construction costs were down 0.6%, as six sectors saw a more than 5% decrease in spending.

Below is a complete breakdown of the sectors that saw construction costs in 2017, and how they changed compared to 2016.