Monday, April 01, 2019

Construction Spending increased 1.0% in February

by Calculated Risk on 4/01/2019 10:19:00 AM

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

Construction spending during February 2019 was estimated at a seasonally adjusted annual rate of $1,320.3 billion, 1.0 percent above the revised January estimate of $1,307.3 billion.
Both private and public spending increased:
Spending on private construction was at a seasonally adjusted annual rate of $994.5 billion, 0.2 percent above the revised January estimate of $993.0 billion. ...

In February, the estimated seasonally adjusted annual rate of public construction spending was $325.8 billion, 3.6 percent above the revised January estimate of $314.4 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 had been increasing - although declined in the 2nd half of 2018 - and is still 20% below the bubble peak.

Non-residential spending is 9% above the previous peak in January 2008 (nominal dollars).

Public construction spending is now back to the previous peak in March 2009, and 25% 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 3%. Non-residential spending is up slightly year-over-year. Public spending is up 1% year-over-year.

This was well above consensus expectations, and spending for December and January were revised up.