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ARLINGTON, VA. — Total construction spending in the U.S. increased by 0.5 per cent in June, driven by increases in most residential and nonresidential construction segments, according to an analysis of federal spending data by the Associated General Contractors of America released Aug. 1.

Association officials noted spending on highway and street projects declined for the month in June, however, warning that regulatory confusion around issues like Buy America rules were delaying activity on many projects.

“Despite high interest rates, private sector demand for most types of construction activity continues to expand,” stated Stephen Sandherr, the association’s CEO, in a release. “Ironically, demand softened in sectors like power and highway and street construction where Washington has directed significant sums.”

�鶹��ý����ion spending, not adjusted for inflation, totalled $1.938 trillion at a seasonally adjusted annual rate in June. That figure is 0.5 per cent above the May rate, which was revised up from the initial estimate. Spending on private residential construction increased for the second consecutive month in June, by 0.9 per cent. Spending on private nonresidential construction was flat in June, while public construction investment increased 0.3 per cent.

Spending was mostly positive among large nonresidential segments. The biggest component, commercial construction, comprising warehouse, retail and farm construction, increased 0.1 per cent in June compared to a month ago. Spending on manufacturing plants increased 0.3 per cent between May and June. Spending on office construction grew by 0.7 per cent for the month.

In other sectors, educational construction grew by 0.1 per cent compared to the prior month. However, spending on power construction fell by 1.3 per cent for the month and highway and street construction fell by 0.1 per cent compared to May.

Residential spending grew by 0.9 per cent from May to June. Single-family homebuilding contributed the majority share of the growth, expanding by 2.1 per cent for the month. New multifamily construction also was up 1.5 per cent compared to May.