Global| Sep 01 2011U.S. Construction Spending Reverses Earlier Decline; 2011 Figures Are Revised Up
by:Tom Moeller
|in:Economy in Brief
Summary
To repeat last month's observation, the construction sector was not in as dire straights as previously shown, but growth still has been negligible. The value of construction spending during July fell 1.3% but that just reversed a [...]
To repeat last month's observation, the construction sector was not in as dire straights as previously shown, but growth still has been negligible. The value of construction spending during July fell 1.3% but that just reversed a revised June increase. Earlier figures for this year also were revised up. Consensus expectations as indicated by Action Economics were for a 0.1% rise in the July level of spending.
A lessened decline in private sector building led the overall July fall in activity. Nonresidential building slipped 0.4% (+5.7% y/y) after its upwardly revised 2.9% June gain. Residential building activity fell 1.4% and reversed its June gain as the value of improvements fell 2.9% (+21.8% y/y). Multi-family building rose 1.4% (-6.0% y/y) and single-family construction ticked up 0.1% (-8.4% y/y).
Reflecting budget shortfalls, public construction activity continued down by 2.1% (-8.8% y/y), the tenth consecutive monthly drop. Power construction fell 5.7% (+4.4% y/y) and sewerage & waste disposal fell 1.7% (-14.3% y/y). Highways & streets construction ticked up 0.5% (-3.8% y/y) but office building fell 3.4% (-14.0% 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 (%) | Jul | Jun | May | Y/Y | 2010 | 2009 | 2008 |
|---|---|---|---|---|---|---|---|
| Total | -1.3 | 1.6 | 2.5 | 0.1 | -11.3 | -15.3 | -7.5 |
| Private | -0.9 | 2.0 | 4.2 | 5.5 | -15.2 | -22.4 | -12.2 |
| Residential | -1.4 | 1.1 | 4.5 | 5.3 | -2.9 | -29.9 | -29.0 |
| Nonresidential | -0.4 | 2.9 | 3.9 | 5.7 | -24.0 | -16.0 | 10.5 |
| Public | -2.1 | 0.8 | -0.5 | -8.8 | -3.9 | 2.1 | 6.6 |
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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