Monday, March 04, 2019

Construction Spending decreased in December

by Calculated Risk on 3/04/2019 10:10:00 AM

From the Census Bureau reported that overall construction spending decreased in December:

Construction spending during December 2018 was estimated at a seasonally adjusted annual rate of $1,292.7 billion, 0.6 percent below the revised November estimate of $1,300.6 billion. The December figure is 1.6 percent above the December 2017 estimate of $1,272.6 billion.

The value of construction in 2018 was $1,297.7 billion, 4.1 percent above the $1,246.0 billion spent in 2017.
Both private and public spending decreased:
Spending on private construction was at a seasonally adjusted annual rate of $991.2 billion, 0.6 percent below the revised November estimate of $997.1 billion. ...

In December, the estimated seasonally adjusted annual rate of public construction spending was $301.5 billion, 0.6 percent below the revised November estimate of $303.5 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 had been increasing - although has declined  recently - and is still 21% below the bubble peak.

Non-residential spending is 10% above the previous peak in January 2008 (nominal dollars).

Public construction spending is now 7% below the peak in March 2009, and 15% 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 down 1%. Non-residential spending is up 3% year-over-year. Public spending is up 4% year-over-year.

This was below consensus expectations, however spending for October and November were revised up.