Global| Jun 03 2013U.S. Construction Spending Inches Higher
by:Tom Moeller
|in:Economy in Brief
Summary
Building activity improved marginally during April. The value of construction put-in-place gained 0.4% (4.3% y/y) after a revised 0.8% March decline and a 0.8% February increase, revised from -1.7% and 1.5%, respectively. A 0.9% gain [...]
Building activity improved marginally during April. The value of construction put-in-place gained 0.4% (4.3% y/y) after a revised 0.8% March decline and a 0.8% February increase, revised from -1.7% and 1.5%, respectively. A 0.9% gain in activity had been expected for April. During the first four months of this year, activity has risen 4.7% from 2012. Residential building is up 17.5% but nonresidential activity fell 1.2%. Public sector building is off 4.0% so far this year versus 2012.
Private sector building activity increased 1.0% (9.0% y/y) in April, bolstered by a 2.2% jump (0.6% y/y) in nonresidential construction. Earlier figures were, however, revised lower. Amusements & recreation building gained 3.5% (-8.2% y/y) while educational spending rebounded 2.9% (-2.7% y/y). Commercial construction ticked up 0.2% (3.0% y/y) but office construction slumped 2.1% (+16.5% y/y). Residential building slipped 0.1% (+18.8% y/y). New housing construction jumped 1.7% (40.0% y/y) but spending on improvements slumped 3.3% (-7.0% y/y).
The value of public sector building dropped 1.2% (-5.1% y/y) and activity was down 19.8% from 2009 high. The latest drop reflected a 5.7% shortfall (-11.2% y/y) in conservation & development as well as a 4.4% decline (-12.7% y/y) in education spending. The value of spending on highways & streets inched up 0.5% (-3.4% y/y).
The construction spending figures are in Haver's USECON database and the expectations figure is contained in the AS1REPNA database.
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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