January US construction spending declined 0.1% from December, according to figures from the Department of Commerce. Seasonally adjusted construction spending during January 2012 totaled $827 billion, 0.1% less than the revised December 2011 total of $827.6 billion. However, January’s total was about 7% higher than $772 billion recorded in January 2011.
We’d point out that the seasonally adjusted numbers may present a more rosy picture than reality given the sharp boost construction markets most probably felt due to unseasonably warm weather this winter; in particular highway spending will perk up in warmer winter months, and the data supported that this month.
Overall Private Construction Spending Stays Flat
Private construction spending during January 2012 totaled a seasonally adjusted figure of $538.7 billion, essentially flat with the revised December 2011 estimate of $538.7 billion (taking margin of error into account). Residential construction occurred at a seasonally adjusted annual rate of $253.6 billion in January, about 2% higher than the revised December estimate of $249.2 billion. However, nonresidential construction dipped slightly, to a seasonally adjusted annual rate of $285 billion in January, 1.5% below the revised December figure of $289.5 billion.
Compared to January 2011, private construction spending rose almost 12% from $482.1 billion. Residential construction grew almost 7% from 237.6 billion, and nonresidential construction increased close to 17% from $244.4 billion.
Highway Spending Rises, Overall Public Construction Spending Drops Slightly
In January, the estimated seasonally adjusted annual rate of public construction spending was $288.3 billion, 0.2% less than the revised December number of $289 billion. Educational construction came in at a seasonally adjusted rate of $71.6 billion, roughly 1% less than the revised December estimate of $72.2 billion. Highway construction declined marginally, totaling a seasonally adjusted $83.7 billion in January, compared to $83.9 billion in December.
Compared to January 2011, public construction spending fell 0.5% from $289.9 billion. Educational construction grew 2% from $69.9 billion and highway construction grew 4.5% from $80.1 billion.
Source: Department of Commerce
