Monday, March 02, 2020

Construction Spending Increased in January

by Calculated Risk on 3/02/2020 10:20:00 AM

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.
emphasis added
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. ...

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.
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 - 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.

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 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.