Global| Apr 01 2021U.S. Construction Spending Declines During February
by:Tom Moeller
|in:Economy in Brief
Summary
• Harsh winter weather curtailed building activity. • Residential decline led by multi-family sector. • Public-sector building weakened. Building activity weakened as severe winter weather curtailed activity. The value of construction [...]
• Harsh winter weather curtailed building activity.
• Residential decline led by multi-family sector.
• Public-sector building weakened.
Building activity weakened as severe winter weather curtailed activity. The value of construction put-in-place fell 0.8% (+5.3% y/y) during February following a 1.2% January increase, revised from 1.7%. A 0.9% February decline had been expected in the Action Economics Forecast Survey.
Private construction eased 0.5% (+7.1% y/y) in February following a 1.5% January rise. Residential construction slipped 0.2% (+21.1% y/y) as multi-family building declined 1.4% (+14.6% y/y) and reversed the prior month's 1.2% gain. It had been rising steadily for nine months. Single-family building edged 0.1% higher (20.9% y/y) following seven straight months of notably strong increase. Home improvement expenditures eased 0.2% (+23.9% y/y) after rising 1.1% in January.
Nonresidential private construction declined 1.0% in February (-9.7% y/y), the seventh decline in eight months. Transportation building rose 0.8% (-2.9% y/), strong for the sixth straight month. Lodging construction fell, however, by 3.2% (-23.9% y/y) and commercial building weakened 1.2% (-7.1% y/y). Education construction fell 1.9% (-17.3% y/y). Office building eased 0.5% (-5.0% y/y), off just slightly for the third straight month.
Public construction fell 1.7% during February (-0.3% y/y) following two months of slight increase. Spending on highways & streets, which makes up nearly one-third of public spending, slipped 0.6% (-1.0% y/y) but outlays on health care units improved 1.4% (8.8% y/y). Power construction fell 0.9% (-3.4% y/y).
The construction spending figures, some of which date back to 1946 can be found in Haver's USECON database. The expectations reading is in the AS1REPNA database.
| Construction Put in Place (SA, %) | Feb | Jan | Dec | Feb Y/Y | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|
| Total | -0.8 | 1.2 | 2.1 | 5.3 | 4.7 | 2.3 | 4.1 |
| Private | -0.5 | 1.5 | 2.7 | 7.1 | 4.6 | 0.6 | 4.0 |
| Residential | -0.2 | 2.2 | 5.0 | 21.1 | 11.3 | -2.5 | 3.5 |
| Nonresidential | -1.0 | 0.4 | -0.8 | -9.7 | -2.9 | 4.4 | 4.7 |
| Public | -1.7 | 0.4 | 0.2 | -0.3 | 5.2 | 8.0 | 4.4 |
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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