Global| Feb 01 2017U.S. Construction Activity Eases
by:Tom Moeller
|in:Economy in Brief
Summary
The value of construction put-in-place slipped 0.2% during December following an unrevised 0.9% November increase. Construction was up 4.2% y/y following stronger growth from 2012 through 2015. The latest decline disappointed [...]
The value of construction put-in-place slipped 0.2% during December following an unrevised 0.9% November increase. Construction was up 4.2% y/y following stronger growth from 2012 through 2015. The latest decline disappointed expectations for a 0.2% increase in the Action Economics Forecast Survey.
Private sector construction activity improved 0.2% (6.3% y/y) after a 1.0% November jump. Residential building increased 0.5% (3.7% y/y) after a 1.1% gain. Multi-family building strengthened 2.8% (11.7% y/y) after a 0.8% dip. Single-family building activity increased 0.5% (0.3% y/y) following a 2.1% jump. The value of improvements eased 0.6% (+6.6% y/y) following two months of 0.3% growth. Nonresidential building activity remained unchanged (+9.2% y/y) following a 0.8% increase. Office building increased 2.0% (35.3% y/y), while commercial construction gained 0.7% (12.3% y/y). To the downside, factory sector building fell 3.5% (-5.9% y/y) and educational constructions was off 2.1% (+18.9% y/y).
Public sector building activity declined 1.7% (-1.8% y/y), the first decline since July. Power plant construction declined 4.4% (-27.5% y/y). Commercial construction weakened 1.1% (+5.2% y/y), and education facility activity declined 2.2% (+1.5% y/y). Highway & street construction, which is roughly one-third of the public sector total, eased 0.6% (+1.5% y/y).
The construction spending figures are in Haver's USECON database and the expectations reading is contained in the AS1REPNA database.
| Construction Put in Place (SA, %) | Dec | Nov | Oct | Dec Y/Y | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|---|
| Total | -0.2 | 0.9 | 0.8 | 4.2 | 4.7 | 10.3 | 11.4 |
| Private | 0.2 | 1.0 | 0.3 | 6.3 | 6.5 | 12.5 | 15.4 |
| Residential | 0.5 | 1.1 | 1.9 | 3.7 | 5.4 | 16.8 | 14.6 |
| Nonresidential | -0.0 | 0.8 | -1.4 | 9.2 | 7.7 | 8.1 | 16.3 |
| Public | -1.7 | 0.7 | 2.4 | -1.8 | -0.2 | 4.5 | 1.9 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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