Global| Aug 02 2010U.S. Construction Activity Inched Up During June
by:Tom Moeller
|in:Economy in Brief
Summary
Construction activity just can't develop forward momentum. Overall, the value of construction-put-in-place inched up just 0.1% during June following a 1.0% May decline that was deeper than initially reported. The June slip was in line [...]
Construction activity just can't develop forward momentum. Overall, the value
of construction-put-in-place inched up just 0.1% during June following a 1.0%
May decline that was deeper than initially reported. The June slip was in line
with Consensus expectations for a 0.5% shortfall. Monthly declines in private
construction again were across-the-board but the annual rates of decline have
slowed substantially since the recession's end. Nevertheless, the level of
overall June activity remained nearly one-third below the 2006 peak.
Residential building activity fell another 0.8% during June led by a 1.0% decline (+15.8% y/y) in spending on improvements. Single-family construction activity also fell 0.7% (25.6% y/y) after twelve consecutive monthly increases. Activity remained one-third above last year's low but building remained off three-quarters from the 2006 high. Multi-family building edged up 0.3% (-51.5% y/y) following severe monthly declines extending back to 2008.
Nonresidential building activity slipped a moderated 0.5% m/m. Since the 2008 peak, activity has fallen by one-third. Spending on multi-retail commercial structures fell 2.8% (-29.2% y/y) and office building fell 1.1% (-38.5% y/y). Health-care building ticked 0.5% higher (-15.0% y/y) but spending on educational facilities fell 1.5% (-23.4% y/y). Spending in the public sector rose 1.5% led by a 5.4% gain in spending on health care (-0.3% y/y). Spending on highways & streets ticked up 0.1% (1.7% y/y).
The construction put-in-place figures are available in Haver's USECON database.
Challenges for the Economy and State Governments is the title of today's speech by Fed Chairman Ben S. Bernanke and it is available here.
| Construction Put In Place (%) | June | May | April | Y/Y | 2009 | 2008 | 2007 |
|---|---|---|---|---|---|---|---|
| Total | 0.1 | -1.0 | 2.3 | -7.9 | -14.9 | -7.5 | -1.4 |
| Private | -0.6 | -1.4 | 2.7 | -10.0 | -21.9 | -12.2 | -5.5 |
| Residential | -0.8 | -1.5 | 6.0 | 11.8 | -29.9 | -29.0 | -19.7 |
| Nonresidential | -0.5 | -1.3 | -0.3 | -24.1 | -15.0 | 10.5 | 23.9 |
| Public | 1.5 | -0.3 | 1.7 | -4.1 | 2.2 | 6.6 | 13.1 |
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.
More Economy in Brief
