by Calculated Risk on 3/02/2020 10:20:00 AM
Monday, March 02, 2020
From the Census Bureau reported that overall construction spending increased in January:
Construction spending during January 2020 was estimated at a seasonally adjusted annual rate of $1,369.2 billion, 1.8 percent above the revised December estimate of $1,345.5 billion. The January figure is 6.8 percent above the January 2019 estimate of $1,282.5 billion.Both private and public spending decreased:
Spending on private construction was at a seasonally adjusted annual rate of $1,022.7 billion, 1.5 percent above the revised December estimate of $1,007.6 billion. ...Click on graph for larger image.
In January, the estimated seasonally adjusted annual rate of public construction spending was $346.5 billion, 2.6 percent above the revised December estimate of $337.8 billion.
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 - but turned down in the 2nd half of 2018. Now it is increasing again, but is still 18% below the bubble peak.
Non-residential spending is 13% above the previous peak in January 2008 (nominal dollars).
Public construction spending is 6% above the previous peak in March 2009, and 32% above the austerity low in February 2014.
The second graph shows the year-over-year change in construction spending.
On a year-over-year basis, private residential construction spending is up 9.0%. Non-residential spending is up 0.5% year-over-year. Public spending is up 12.6% year-over-year.
This was well above consensus expectations of a 0.7% increase in spending, construction spending for November and December were revised up.
Posted by Calculated Risk on 3/02/2020 10:20:00 AM