Construction spending—a key economic indicator of infrastructure activity—jumped 3.5% higher in June compared to a year ago, and was up 0.5% month-over-mon🌳th, according to data released by the U.S. Census Bureau on Tuesday.

The gain compared to last year was driven by a surge in non-residential manufacturing and office construction spending. Residential construction spending was up 0.9% from May, and down 10.3% compared to June of last year.

During the first six months of 2023, construction spending amounted to $917.ও4 billion, 3.🎀0% higher than the same period in 2022. 

Private Construction Spending Picks Up

Spending on private construction projects, including private housing,  was 0.5% above the revised May estimate, ending June at a seasonally-adjusted annual rate of $1,516.9 billion. Nonresidential private construction was unchanged🌞 from May of this year. 

Spending on manufactur༒ing construction rose 80.7% year-over-year. Office spending also rose 22.0% on a year-over༒-year basis, but was only 0.5% higher than in May. Private lodging construction spending rose 20.9% on a year-over-year basis, but was unchanged from May. 

Private single family construction spending was up 2.1% from May, and down 21.5% from June of 2022. Private multifamily construction spending was up 1.5% from May and up 21.8% on a year-over-year basis.

Public Construction༺ Spending Shows Year-over-Year Growth

Total public construction spending was up 0.3% from May and rose 13.6% ♔year-over-year. Among public construction spending, residential spending dropped 0.2% from May and was up 6.9% from June of last year. 

Other nonreside༒ntial public construction spending was up 0.3% from May, and rose 13.8% from June of last year. 

Public spending on power construction was up 36.7% from June of last year and was up 1.0% from May. Spending on sewage and waste disposal was up 23.3% from June of last year, and up 1.6% from May.