The seasonally adjusted annual rate of construction spending for January 2017 was estimated at $1,180.3 billion, according to the latest report from the U.S. Census Bureau. This is 0.1% below the December 2016 estimate which has been revised up from $1,181.5 billion to $1,192.2 billion. November’s estimate was also revised up again from $1,184.4 billion to $1,191.5 billion. January’s estimate is 3.1% higher than a year ago. The estimate for January 2016 was $1,144.9 billion.
Total private construction spending for January rose 0.2% to $911.6 billion over December’s $909.4 billion which has been revised up from an estimated rate of $897.0 billion. November’s seasonally adjusted annual rate was revised up from $894.8 billion to $904.7 billion.
Private residential construction in January was estimated at $476.4 billion, a 0.5% increase from December. Private nonresidential construction was at a seasonally adjusted annual rate of $435.3 billion, virtually unchanged from the month prior.
Public construction spending in January 2017 was down 5.0% from December’s estimate at a seasonally adjusted annual rate of $268.7 billion. December’s estimate was revised down from $284.5 billion to $282.8 billion. November’s estimate was revised down from $289.6 billion to $286.8 billion. All sectors of public construction were down in total spending from the previous month. January’s estimate was also down 9.0% from January 2016 with an estimate of $295.2 billion.
ConstructConnect Chief Economist Alex Carrick shared the following thoughts on the latest Construction Spending report:
“When it comes to the Census Bureau’s put in place construction spending numbers, I’m always most interest in whether or not they appear to be speeding up or slowing down.
The seasonally adjusted (SA) grand capital spending figure in the most recent January was +3.1% year over year. A year ago, in January 2016, it had been +10.3%.
In fact, grand total PIP spending was above +10.0% y/y in each of the first three months of last year.
Total residential construction in this year’s January was +5.5% y/y. That’s about half the rate of increase as was realized in 2016’s January, +11.4%.
In the nonresidential segment of construction (i.e., 59% of the whole), the most growth figure was +1.5% y/y, considerably slower than the +9.6% y/y improvement in the first month of 2016.
Three subcategories of construction are far outperforming all others at present. ‘Lodging’ put in place capital spending in January was +22.2% y/y; ‘office’ work was even better at +28.8% y/y; and what is termed ‘commercial,’ which is mainly retail, was +10.6% y/y.
The uptick in ‘retail’ is surprising to see, given that a number of major ‘bricks and mortar’ retail chains have been making headlines by announcing store closings.
The manufacturing sector, however, continued to disappoint early in 2017. At -6.9% y/y, its investment spending was down for the tenth month in a row.”
The latest release also included the annual value of construction put in place (CPIP) for 2016. Total CPIP was $1,164.4 billion, a 4.7% increase over the $1,112.4 billion in 2015. Total private CPIP for last year was $878.5 billion, up 6.7% over 2015 and total public CPIP in 2016 was $285.8 billion, 1.1% lower than 2015 totals.
3 thoughts on “U.S. Construction Spending Falls 1% in January”
This only indicates that Construction industry survives even under the worst economic situation.
Can any one think of an industry,where the loss owing to frauds has reached more than US $ 4 Trillion a year in 2008, according to Transparency International. Between 10 to 30% of the project costs.
The other interesting aspect is these are audited and public constructions. Yet no University in the world thought about a Masters Course on Construction Auditing.
Thanks for the comment. The $4 trillion you refer to is worldwide. “It is estimated that each year
over USD $4 trillion annually is lost through mismanagement, inefficiency, and corruption in public
construction – on average 10 to 30 percent of a project’s value.” http://integrityaction.org/sites/default/files/publication/files/G20%20Integrity%20Summit%20Policy%20brief.pdf
To your other point, the construction industry in the U.S. suffered greatly during the Great Recession, reduced spending and millions of lost jobs that they have still yet to recover.
This indicates that the construction industry survives even under difficult times.
Can any one think of an industry where the loss owing to frauds has reached more than US $ 4 Trillion a year as per Transparency International
More interesting is these are Govt.funds and audited as “Check & Balance”.
Yet no University is still thinking of a Masters Course on Construction auditing