Global| Mar 13 2019U.S. Construction Spending Improves As Public Sector Strengthens
by:Tom Moeller
|in:Economy in Brief
Summary
The value of construction put-in-place increased 1.3% (0.3% y/y) during January following a 0.8% December decline, revised from -0.6%. November's figures were revised sharply downward. January's increase was the largest in nine [...]
The value of construction put-in-place increased 1.3% (0.3% y/y) during January following a 0.8% December decline, revised from -0.6%. November's figures were revised sharply downward. January's increase was the largest in nine months. A 0.6% rise had been expected in the Action Economics Forecast Survey.
The value of public construction jumped 4.9% (8.0% y/y), the largest monthly rise since early-2004. It was powered by a 12.1% surge (26.3% y/y) in commercial building activity. Highway & street construction, which accounts for roughly one-third of public sector spending, rose 11.8% (12.7% y/y). Health care building gained 7.9% (-5.6% y/y) and educational facility construction rose 2.2% (8.1% y/y). Water supply construction fell 1.1% (+4.6% y/y).
The value of private construction activity rose 0.2% (-2.0% y/y). Residential building slipped 0.3% (-5.6% y/y) as single-family construction dropped 0.7% (-7.2% y/y). The value of improvements eased 0.3% (-8.8% y/y). Multi-family construction jumped 1.4% (12.8% y/y) after four months of strong increase. Nonresidential building activity improved 0.8% (2.4% y/y) after a 0.6% rise. Office construction strengthened 1.8% (7.6% y/y) and commercial construction improved 1.5% (-4.7% y/y). Factory sector building fell 1.0% (+3.7% y/y).
The construction spending figures, some of which date back to 1946, are in Haver's USECON database. The expectations reading can be found in the AS1REPNA database.
| Construction Put in Place (SA, %) | Jan | Dec | Nov | Jan Y/Y | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|
| Total | 1.3 | -0.8 | -1.3 | 0.3 | 3.8 | 4.5 | 7.0 |
| Private | 0.2 | -0.7 | -1.3 | -2.0 | 3.0 | 7.1 | 9.2 |
| Residential | -0.3 | -1.9 | -0.6 | -5.6 | 2.7 | 12.4 | 10.7 |
| Nonresidential | 0.8 | 0.6 | -2.1 | 2.4 | 3.4 | 1.3 | 7.7 |
| Public | 4.9 | -1.0 | -1.4 | 8.0 | 6.5 | -3.2 | 0.7 |
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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