One Bright Spot: Retail Construction Ticks Up
By Rohit Diwadkar
According to a recent U.S. Census Bureau data release, total spending on residential construction in September fell 0.4% from a month earlier, dropping to a seasonally adjusted annual rate of $773.5 billion. That's the second month in a row the total has dipped. Still, on a year-over-year basis, spending by private develpers increased by 19.3%. That total has also increased 24.9% year to date compared to a year ago.
Single-family and multifamily construction spending dropped to $412.7 billion and $100.04 billion, respectively, in September at a seasonally adjusted annual rate.
Single-family construction slipped 0.6% and multifamily spending declined 0.3% from the previous month, but they are up 30.4% and 10.5%, respectively, from a year ago.
Analysts attributed the declines to the rising cost of building materials, supply-chain issues and the challenges of finding labor.
One area where construction spending increased was retail, where overall spending on construction of retail centers climbed 3.6%, and general merchandise outlets (0.9%), shopping centers (3.4%) and shopping malls (1.2%) slightly increased in September from August.