by Calculated Risk on 9/01/2009 10:29:00 AM
Tuesday, September 01, 2009
Two of the key stories in 2009 are the probable bottom for residential construction spending, and the collapse in private non-residential construction. Both stories are still developing ... but this report shows further evidence of both stories.
Click on graph for larger image in new window.
The first graph shows private residential and nonresidential construction spending since 1993. Note: nominal dollars, not inflation adjusted.
Residential construction spending increased in July, and nonresidential spending continued to decline.
Private residential construction spending is now 63.7% below the peak of early 2006.
Private non-residential construction spending is still only 9.7% below the peak of last September.
The second graph shows the year-over-year change for private residential and nonresidential construction spending.
Nonresidential spending is off 8.3% on a year-over-year basis, and will turn strongly negative as projects are completed. Residential construction spending is still declining YoY, although the negative YoY change will get smaller going forward.
From the Census Bureau: July 2009 Construction at $958 Billion Annual Rate