The dollar value of new construction activity on residential, non-residential, and public projects. Data are available in nominal and real (inflation-adjusted) dollars. Why Investors Care
| Released on 3/1/07 For Jan 2007 | ||||||||||||
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Highlights
Construction spending fell 0.8 percent in January, following a 0.6 percent increase in December. December had previously been estimated as a 0.4 percent drop. January's decrease was below the consensus expectation for a 0.5 percent decline in construction outlays. On a year-on-year basis, overall construction outlays slipped to down 1.2 percent in January from down 0.4 percent in December.
January's fall was led by private residential construction. Private nonresidential outlays were flat while public outlays posted a sizeable increase. Private residential construction fell 1.8 percent in January, following a 1.0 percent decline in December. Private residential construction was down 13.0 percent on a year-on-year basis, compared to down 11.9 percent in December.
Private nonresidential outlays showed no change in January, following a 2.3 percent boost in December. Private nonresidential outlays are up 14.7 percent in January on a year-on-year basis, compared to up 16.2 percent in December.
By components nonresidential gains were seen in lodging, up 3.1 percent; office, up 3.4 percent; religious, up 1.9 percent; communication, up 3.2 percent; manufacturing, up 4.3 percent; and transportation up 6.6 percent. Declines were seen in commercial, down 0.8 percent; health care, down 0.6 percent; amusement, down 4.2 percent; power, down 11.9 percent; and educational, down 0.1 percent.
Public construction rose 0.6 percent in January, following a 2.4 percent spike in December. Public construction is up 12.0 percent year-on-year, compared to up 11.8 percent in December.
Today's report shows a continuation of the weakness in residential construction but with nonresidential showing some signs of slowing. The weakness in housing should not be surprising since outlays lags sales and starts and those have not trended up yet. Compared to the personal income report, initial claims, and ISM report, there is not much to get excited about.
Construction spending fell 0.4 percent in December, following a 0.1 percent rise in November. December's fall was led by private residential construction as private nonresidential and public outlays posted healthy gains. Typically, construction outlays lag housing sales notably but with atypically favorable weather helping starts in January, we may see a temporary blip in outlays also.
Construction spending Consensus Forecast for January 07: -0.5 percent
Range: -1.0 to -0.1 percent
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Over the last year, a decline in residential outlays has pulled down year-on-year growth for overall construction outlays. Nonresidential and public outlays are positive with nonresidential actually strong. |
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