Global| Feb 01 2012U.S. Construction Spending Firms
by:Tom Moeller
|in:Economy in Brief
Summary
The level of construction spending logged another increase. Activity during December increased 1.5% after a 0.4% November gain, initially reported as 1.2%. Consensus expectations were for a 0.7% December rise. These m/m machinations [...]
The level of construction spending logged another increase. Activity during December increased 1.5% after a 0.4% November gain, initially reported as 1.2%. Consensus expectations were for a 0.7% December rise. These m/m machinations left the level of activity at its highest since April, 2010.
Private sector spending rose a sharp 2.1% led by a 3.3% rise (11.4% y/y) rise in nonresidential building. Manufacturing activity was notably strong rising 13.6% (43.4% y/y) and outlays on power facilities rose 3.2% (14.9% y/y). The value of residential building increased a lesser 0.8% (2.9% y/y), held back by a 0.3% (+18.8% y/y) decline in multi-family. Single-family building rose 1.5% (3.7% y/y) while home-improvements edged up 0.2% (4.4% y/y).
Public construction activity ticked up 0.5% (-2.5% y/y). Highways & streets construction rose 1.8% (2.5% y/y). The value of building activity here is nearly one-third of the public construction total. The value of building in the educational sector slipped marginally m/m but rose 18.4% y/y. Office building also slipped m/m and by 0.7% y/y.
The construction put-in-place figures are available in Haver's USECON database. The expectations figure is contained in Haver's AS1REPNA database.
| Construction Put in Place (%) | Dec | Nov | Oct | Y/Y | 2011 | 2010 | 2009 |
|---|---|---|---|---|---|---|---|
| Total | 1.5 | 0.4 | 0.3 | 4.3 | -1.9 | -11.3 | -15.3 |
| Private | 2.1 | -0.4 | 1.4 | 8.3 | 0.6 | -15.2 | -22.4 |
| Residential | 0.8 | -0.3 | 2.8 | 4.9 | -1.2 | -2.9 | -29.9 |
| Nonresidential | 3.3 | -0.5 | 0.2 | 11.4 | 2.3 | -24.0 | -16.0 |
| Public | 0.5 | 1.7 | -1.7 | -2.5 | -6.1 | -3.9 | 2.1 |
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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