Monday, April 02, 2018

Construction Spending increased 0.1% in February

by Bill McBride on 4/02/2018 10:50:00 AM

Earlier today, the Census Bureau reported that overall construction spending increased in February:

Construction spending during February 2018 was estimated at a seasonally adjusted annual rate of $1,273.1 billion, 0.1 percent above the revised January estimate of $1,272.2 billion. The February figure is 3.0 percent above the February 2017 estimate of $1,235.7 billion.
Private spending increased and public spending decreased in February:
Spending on private construction was at a seasonally adjusted annual rate of $982.0 billion, 0.7 percent above the revised January estimate of $974.8 billion. ...

In February, the estimated seasonally adjusted annual rate of public construction spending was $291.1 billion, 2.1 percent below the revised January estimate of $297.4 billion.
emphasis added
Construction Spending Click on graph for larger image.

This graph shows private residential and nonresidential construction spending, and public spending, since 1993. Note: nominal dollars, not inflation adjusted.

Private residential spending has been increasing, but is still 21% below the bubble peak.

Non-residential spending is 8% above the previous peak in January 2008 (nominal dollars).

Public construction spending is now 11% below the peak in March 2009, and 11% above the austerity low in February 2014.

Year-over-year Construction SpendingThe second graph shows the year-over-year change in construction spending.

On a year-over-year basis, private residential construction spending is up 5%. Non-residential spending is up 1% year-over-year. Public spending is up 2% year-over-year.

This was below the consensus forecast of a 0.5% increase for February, however spending for the previous two months was revised up.