Global| Aug 03 2015U.S. Construction Spending Trend Is Strong
by:Tom Moeller
|in:Economy in Brief
Summary
The value of construction put-in-place ticked 0.1% higher during June (12.3% y/y) following gains of 1.8% and 3.8% during the prior two months. These were much stronger than reported earlier. Three-month growth of 25.2% (AR) was [...]
The value of construction put-in-place ticked 0.1% higher during June (12.3% y/y) following gains of 1.8% and 3.8% during the prior two months. These were much stronger than reported earlier. Three-month growth of 25.2% (AR) was nearly the strongest on record. A 0.6% June rise had been expected in the Action Economics Forecast Survey.
Building activity in the private sector declined 0.5% following a 1.7% May increase, revised from 0.9%. Activity increased at a 21.7% rate during the last three months. Nonresidential construction activity declined 1.3% (+15.2% y/y) following three months of strong increase. Residential building activity rose 0.4% (12.9% y/y) after firmer gains in the prior two months. Multi-family construction improved 2.8% (24.7% y/y), the fourth month in five of strong increase. Spending on improvements improved 0.7% (8.9% y/y) after gains of 1.4% and 5.5% in the prior two months. Single-family building fell 0.3% (+4.8% y/y) after two months of moderate improvement.
Public sector building gained 1.6% (8.4% y/y) and rose by one-third at an annual rate during the last three months. Public safety construction grew 2.8% (-3.9% y/y). Water supply spending grew 13.3% (14.4% y/y) while highway & street construction increased 1.2% (15.2% y/y). Office construction fell 3.8% (10.1% y/y) but educational building improved 0.2% (3.5% y/y).
The construction spending figures are in Haver's USECON database and the expectations figure is contained in the AS1REPNA database.
| Construction Put in Place (SA, s%) | Jun | May | Apr | Jun Y/Y | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|
| Total | 0.1 | 1.8 | 3.8 | 12.3 | 4.8 | 6.6 | 9.2 |
| Private | -0.5 | 1.7 | 3.8 | 14.0 | 6.0 | 11.3 | 15.9 |
| Residential | 0.4 | 0.9 | 2.6 | 12.9 | 1.0 | 19.5 | 14.9 |
| Nonresidential | -1.3 | 2.5 | 4.9 | 15.2 | 11.3 | 3.6 | 16.9 |
| Public | 1.6 | 2.1 | 3.9 | 8.4 | 1.9 | -3.1 | -2.5 |
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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