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Construction Spending on the Upswing

home builders

Overall construction spending increased by 3.0 percent year-over-year according to the latest monthly Construction Spending Report [1] released by the U.S. Census Bureau [2]. The report also found a month-over-month spending increase, with overall construction spending inching upwards from $1,272.2 billion in January 2018 (revised) to $1,273.1 billion in February.

Private construction hit a seasonally adjusted annual rate of $982 billion in February, up 0.7 percent over the revised January estimate of $974.8 billion. Breaking things down further,  residential construction in February reached a seasonally adjusted annual rate of $533.4 billion, creeping up 0.1 percent above the revised January estimate of $532.9 billion. On the nonresidential side of things, construction for February was at a seasonally adjusted annual rate of $448.6 billion in February, up 1.5 percent over the revised January estimate of $441.9 billion.

The Census Bureau reports that new single-family construction increased 0.1 percent month-over-month, reaching a seasonally adjusted annual rate of $281.8 billion in February, up from $279.2 billion in January. Compared to February 2017, however, new single-family construction increased 9.5 percent.

Public construction took a downturn in February, with the estimated seasonally adjusted annual rate of public construction spending hitting $291.1 billion for the month. This was 2.1 percent below the revised January estimate of $297.4 billion. Under the public construction umbrella, educational construction was measured at a seasonally adjusted annual rate of $74.6 billion, 0.5 percent below the revised January estimate of $75 billion. Highway construction was at a seasonally adjusted annual rate of $88.5 billion, 0.2 percent below the revised January estimate of $88.7 billion.

The Bureau will release its next construction spending report—which will cover March 2018's figures—on May 1, 2018.