Friday, February 01, 2008

Construction Spending Declines in December

by Calculated Risk on 2/01/2008 11:10:00 AM

From the Census Bureau: December 2007 Construction Spending at $1,140.2 Billion Annual Rate

Spending on private construction was at a seasonally adjusted annual rate of $842.4 billion, 1.0 percent below the revised November estimate of $850.8 billion.

Residential construction was at a seasonally adjusted annual rate of $462.0 billion in December, 2.8 percent below the revised November estimate of $475.1 billion.

Nonresidential construction was at a seasonally adjusted annual rate of $380.4 billion in December, 1.3 percent above the revised November estimate of $375.6 billion.
Once again, non-residential spending offset some of the decline in private residential construction spending.

Construction SpendingClick on graph for larger image.

The graph shows private residential and nonresidential construction spending since 1993.

Over the last couple of years, as residential spending has declined, nonresidential has been very strong. There is plenty of evidence - like the Fed's Loan Officer Survey - that suggests a slowdown in nonresidential spending is imminent, but it still hasn't shown up in the construction spending numbers.