Global| Jul 01 2015U.S. Construction Spending Growth Eases
by:Tom Moeller
|in:Economy in Brief
Summary
The value of construction put-in-place increased 0.8% during May following a little-revised 2.1% April gain. Three-month growth of 18.1% (AR) was the strongest since mid-2012. A 0.3% May rise had been expected in the Action Economics [...]
The value of construction put-in-place increased 0.8% during May following a little-revised 2.1% April gain. Three-month growth of 18.1% (AR) was the strongest since mid-2012. A 0.3% May rise had been expected in the Action Economics Forecast Survey. Figures back to 2013 were revised.
Building activity in the private sector improved 0.9% (10.3% y/y) and increased at an 18.7% rate during the last three months. Nonresidential building activity jumped 1.5% (12.7% y/y) after firmer gains in the prior two months. Residential construction activity improved 0.3% (7.8% y/y). Single-family building remained unchanged (11.4% y/y) and multi-family construction gained 0.2% (19.5% y/y). Spending on improvements improved 0.9% (-1.9% y/y) and reversed the prior month's decline.
Public sector building gained 0.7% (2.8% y/y) and rose at a 16.8% rate during the last three months. Office construction strengthened 13.7% (14.2% y/y) while highway & street construction increased 2.1% but was unchanged y/y. Educational building slipped 0.7% (+3.2% y/y). Power construction eased 0.2% (-33.5% y/y) while health care building was little-changed (-5.0% y/y).
The construction spending figures are in Haver's USECON database and the expectations figure is contained in the AS1REPNA database.
| Construction Put in Place (SA, s%) | May | Apr | Mar | May Y/Y | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|
| Total | 0.8 | 2.1 | 1.3 | 7.9 | 4.8 | 6.6 | 9.2 |
| Private | 0.9 | 2.2 | 1.2 | 10.3 | 6.9 | 11.1 | 16.0 |
| Residential | 0.3 | 0.3 | -0.8 | 7.8 | 1.5 | 20.2 | 14.4 |
| Nonresidential | 1.5 | 4.0 | 3.3 | 12.7 | 12.7 | 2.7 | 17.5 |
| Public | 0.7 | 1.7 | 1.5 | 2.8 | 1.8 | -3.1 | -2.8 |
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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