Public Construction Spending Strong in 2007

Construction spending on education projects was up 13.3 percent in 2007, which helped to propel spending on public construction projects in the last year. Private construction spending was down from 2006 and overall construction spending was down slightly from 2006.

Public construction projects were up in 2007, softening the blow to overall construction segment in the previous year, according to the Commerce Department. The value of construction spending in 2007 was $1.161 billion, 2.6 percent below the $1.192 billion spent in 2006.

The value of public construction in 2007 was $287.4 billion, 12.6 percent above the $255.2 billion spent in 2006. Educational construction in 2007 was $81.8 billion, 13.3 percent above the 2006 figure of $72.2 billion and highway construction was $76.7 billion, 7.3 percent above the $71.5 billion in 2006.

The value of private construction in 2007 was $874 billion, 6.7 percent below the $937 billion spent in 2006. Residential construction in 2007 was $524.1 billion, 18.3 percent below the 2006 figure of $641.3 billion and nonresidential construction was $349.8 billion, 18.3 percent above the $295.7 billion in 2006.

Construction spending in December 2007 was estimated at a seasonally adjusted annual rate of $1.14 billion, 1.1 percent below the revised November estimate of $1.153 billion.

Spending on private construction was at a seasonally adjusted annual rate of $842.4 billion, one percent below the revised November estimate of $850.8 billion. Residential construction was at a seasonally adjusted annual rate of $462 billion in December, 2.8 percent below the revised November estimate of $475.1 billion. Nonresidential construction was at a seasonally adjusted annual rate of $380.4 billion in December, 1.3 percent above the revised November estimate of $375.6 billion.

In December, the estimated seasonally adjusted annual rate of public construction spending was $297.8 billion, 1.5 percent below the revised November estimate of $302.3 billion. Educational construction was at a seasonally adjusted annual rate of $86.2 billion, 1.3 percent below the revised November estimate of $87.3 billion. Highway construction was at a seasonally adjusted annual rate of $78.5 billion, 2.1 percent below the revised November estimate of $80.2 billion.