According to a report for August from The U.S. Census Bureau of the Department of Commerce construction spending during August 2012 was estimated at $837.1 billion, seasonally adjusted annual rate. This figure is 6.5 percent above the August 2011 estimate of $786.3 billion.
These numbers are somewhat relevant to The Interface Financial Group because of limits on construction factoring services. This is an ecellent way for builders or general construction manager to plan ahead and budget for project phasing. It enables a construciton company to continue working on the next phase of a contractd before being paid by for work completed, due to 60 and/or 90 day invoic cycles.
During the first 8 months of this year, construction spending amounted to $545.2 billion, 9.0 percent above the $500.1 billion in 2011, over the same period last year.
The report indicated that residential construction was at a rate of $273.5 billion in August, while private construction spendng came in at an annual rate of $562.2 billion.
Nonresidential construction was at a seasonally adjusted annual rate of $288.7 billion in August, and the estimated seasonally adjusted annual rate of public construction spending was $274.9 billion, 0.8 percent below the revised July estimate of $277.2 billion.
Educational construction was at a seasonally adjusted annual rate of $67.0 billion, which was 3.4 percent below the revised July estimate of $69.4 billion, and last, highway construction was at a seasonally adjusted annual rate of $80.8 billion.
The September 2012 data will be released in November 2012. Stay tuned for The Interface Financial Group recap.