Kids on vacation weren’t the only ones having a good summer. Construction spending remained strong this summer, with July’s total up 13.7 over the past year, according to the Construction News.
The article noted that July’s seasonally adjusted annual rate increased to $1,083.4 billion, the fifth consecutive month construction spending topped $1 trillion. This is 0.7% higher than June’s revised estimate of $1,075.9 billion, which is up from its initial estimate of $1,064.6 billion. July’s estimate represents a 13.7% increase over the last 12 months. May’s estimate has been revised up again to $1,068.4 billion from $1,063.5 billion. This marks a seven-year high for construction spending. The last time it was this high was back in May 2008 when it hit $1,091.6 billion.
All told, those are some pretty good reasons for optimism. And as we near the fourth quarter of 2015, it’s looking like the year will close on a good note. Construction spending for January through July 2015 was at $583.2 billion, a total of 9.3% higher than the $533.7 billion spent during the seven months of 2014.
With any luck, the sports facility construction market will mirror this type of growth. Some of the residential facilities, such as private tennis courts, might be indicated in the annual rate for private construction spending, which increased to $787.8 billion in July. In fact, Private nonresidential construction increased to $407 billion in July, up from June’s revised figure of $400.8 billion.
Curiously, the public construction market seems to have dipped – if only fractionally. The seasonally adjusted annual rate for public construction spending decreased 1.0% from June’s revised figure of $298.5 billion to $295.6 billion in July. May’s construction spending was revised down from $293.5 billion to 292 billion. This is the third time this year that public construction spending has decreased from the previous month; it happened consecutively in January and February.
Whether this mirrors the overall picture of the sports facility construction market is an unknown presently. However, ASBA will continue to track trends and to report on them as information is obtained.
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