Global| Jul 01 2010U.S. Construction Activity Slips After Two Strong Months
by:Tom Moeller
|in:Economy in Brief
Summary
Construction activity slipped 0.2% during May following revised 2.3% and 1.0% gains during the prior two months. The slip was in line with Consensus expectations for a 0.7% decline. Monthly declines in private construction were [...]
Construction activity slipped 0.2% during May following revised 2.3% and 1.0%
gains during the prior two months. The slip was in line with Consensus
expectations for a 0.7% decline. Monthly declines in private construction were
across-the-board but the annual rates of decline have slowed substantially.
Nevertheless, the level of May activity remained nearly one-third below the 2006
peak. The latest figures reflect benchmark revision extending back to 2004.
Residential building activity slipped 0.4% last month led by a 6.3% decline (-57.1% y/y) in new multi-family building. Spending on improvements also slipped 0.8% (+13.3% y/y) though single-family construction activity rose 0.8% (31.2% y/y) for the twelfth consecutive monthly increase. It lifted activity by more than one-third from last year's low. Nevertheless, building remained off three-quarters from the 2006 high.
Nonresidential building activity also slipped 0.6%, reversing the April rise. Since the 2008 peak, activity has fallen by one-third. Spending on lodging fell a sharp 5.6% (-63.6% y/y) and office building dropped 2.2% (-41.9% y/y). Health-care building ticked 0.9% higher (-16.5% y/y). Spending in public sector rose 0.4% led by a 2.7% gain in spending on highways & streets (5.5% y/y).
The construction put-in-place figures are available in Haver's USECON database.
| Construction Put In Place (%) | May | April | March | Y/Y | 2009 | 2008 | 2007 |
|---|---|---|---|---|---|---|---|
| Total | -0.2 | 2.3 | 1.0 | -8.0 | -14.9 | -7.5 | -1.4 |
| Private | -0.5 | 2.8 | -0.0 | -10.7 | -21.9 | -12.2 | -5.5 |
| Residential | -0.4 | 5.0 | 0.2 | 11.2 | -29.9 | -29.0 | -19.7 |
| Nonresidential | -0.6 | 0.8 | -0.3 | -24.8 | -15.0 | 10.5 | 23.9 |
| Public | 0.4 | 1.6 | 2.9 | -2.9 | 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.
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