Global| Apr 03 2017U.S. Construction Spending Increase Follows Two Months of Decline
by:Tom Moeller
|in:Economy in Brief
Summary
The value of construction put-in-place gained 0.8% during February (+3.0% y/y), after easing 0.4% in January and 0.2% during December. The increase compares to expectations for a 1.0% rise in the Action Economics Forecast Survey. [...]
The value of construction put-in-place gained 0.8% during February (+3.0% y/y), after easing 0.4% in January and 0.2% during December. The increase compares to expectations for a 1.0% rise in the Action Economics Forecast Survey. Despite these lackluster monthly performances, the dollar level of construction activity was near the all-time high and was nearly two-thirds higher than the 2010 low.
Private sector construction activity increased 0.8% (6.9% y/y) in February following no change in January. Residential building gained 1.8% (6.4% y/y), the strongest rise in three months. Multi-family building rose 2.0% (10.6% y/y) after a 4.0% rise. Single-family building increased for a second straight month by 1.2% (3.4% y/y). The value of improvements jumped 2.7% (9.6% y/y) and reversed the prior month's drop. Nonresidential building activity eased 0.3% (+7.5% y/y), about as it did in January. Office construction rebounded 0.5% (24.8% y/y), but commercial construction eased 0.8% (+13.6% y/y) after a 0.3% decline. These dips follow out-sized strength in 2016. Manufacturing sector construction declined 1.7% (-9.8% y/y) following no change. Power plant construction strengthened 3.0% (9.4% y/y) to the highest level since mid-2014.
Public sector building activity improved 0.6% (-8.0% y/y) following three months of decline. Educational facility spending improved 0.5% (0.5% y/y) after a 1.8% increase. Transportation facilities building gained 0.8% (-10.4% y/y) and office building fell 2.9% (-7.8% y/y). Highways and streets, about one-third of total public construction, increased 1.3% (-5.1% y/y) after January's 0.1% uptick.
The construction spending figures are in Haver's USECON database and the expectations reading is contained in the AS1REPNA database.
| Construction Put in Place (SA, %) | Feb | Jan | Dec | Feb Y/Y | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|---|
| Total | 0.8 | -0.4 | -0.2 | 3.0 | 4.8 | 10.3 | 11.4 |
| Private | 0.8 | 0.0 | 0.5 | 6.9 | 6.7 | 12.5 | 15.4 |
| Residential | 1.8 | 0.2 | 0.9 | 6.4 | 5.6 | 16.8 | 14.6 |
| Nonresidential | -0.3 | -0.2 | 0.1 | 7.5 | 7.9 | 8.1 | 16.3 |
| Public | 0.6 | -1.9 | -2.6 | -8.0 | -0.4 | 4.5 | 1.9 |
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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