Global| Jun 01 2006U.S. Construction Spending Slipped
by:Tom Moeller
|in:Economy in Brief
Summary
The value of construction put in place slipped 0.1% in April after a downwardly revised 0.9% March increase. Consensus expectations had been for no change. Residential building reversed all of a downwardly revised 1.0% March gain. New [...]
The value of construction put in place slipped 0.1% in April after a downwardly revised 0.9% March increase. Consensus expectations had been for no change.
Residential building reversed all of a downwardly revised 1.0% March gain. New single family building slumped 1.6% (11.5% y/y), the first monthly decline in over a year, and the value of spending on improvements fell 0.5% (-6.9% y/y).
Nonresidential building improved 2.5% following an upwardly revised 0.6% March increase as office construction surged 3.0% (13.8% y/y) and commercial building rose 1.8% (6.5% y/y). Multi-retail building jumped 2.0% (33.2% y/y) led by a 6.0% (52.7% y/y) ramp-up in the value of building shopping malls.
Public construction spending slipped 0.2% though construction activity on highways & streets, nearly one third of the value of public construction spending, rose 0.4% (10.7% y/y).
These more detailed categories represent the Census Bureau’s reclassification of construction activity into end-use groups. Finer detail is available for many of the categories; for instance, commercial construction is shown for Automotive sales and parking facilities, drugstores, building supply stores, and both commercial warehouses and mini-storage facilities. Note that start dates vary for some seasonally adjusted line items in 2000 and 2002 and that constant-dollar data are no longer computed.
| Construction Put-in-place | April | March | Y/Y | 2005 | 2004 | 2003 |
|---|---|---|---|---|---|---|
| Total | -0.1% | 0.9% | 8.5% | 9.2% | 10.9% | 5.4% |
| Private | -0.1% | 0.9% | 8.6% | 9.7% | 13.6% | 6.3% |
| Residential | -1.1% | 1.0% | 7.1% | 11.5% | 18.2% | 12.9% |
| Nonresidential | 2.5% | 0.6% | 12.2% | 5.4% | 3.9% | -5.4% |
| Public | -0.2% | 0.8% | 8.2% | 7.6% | 2.5% | 2.7% |
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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