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Construction Spending increased in January

Summary:
From the Census Bureau reported that overall construction spending decreased in December:Construction spending during January 2019 was estimated at a seasonally adjusted annual rate of ,279.6 billion, 1.3 percent above the revised December estimate of ,263.1 billion. The January figure is 0.3 percent above the January 2018 estimate of ,276.3 billion.Both private and public spending increased:Spending on private construction was at a seasonally adjusted annual rate of 6.0 billion, 0.2 percent above the revised December estimate of 4.2 billion. ...In January, the estimated seasonally adjusted annual rate of public construction spending was 3.6 billion, 4.9 percent above the revised December estimate of 9.0 billion. emphasis added Click on graph for larger image.This graph

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From the Census Bureau reported that overall construction spending decreased in December:
Construction spending during January 2019 was estimated at a seasonally adjusted annual rate of $1,279.6 billion, 1.3 percent above the revised December estimate of $1,263.1 billion. The January figure is 0.3 percent above the January 2018 estimate of $1,276.3 billion.
Both private and public spending increased:
Spending on private construction was at a seasonally adjusted annual rate of $966.0 billion, 0.2 percent above the revised December estimate of $964.2 billion. ...

In January, the estimated seasonally adjusted annual rate of public construction spending was $313.6 billion, 4.9 percent above the revised December estimate of $299.0 billion.
emphasis added
Construction Spending increased in January Click on graph for larger image.

This graph shows private residential and nonresidential construction spending, and public spending, since 1993. Note: nominal dollars, not inflation adjusted.

Private residential spending had been increasing - although has declined  recently - and is still 25% below the bubble peak.

Non-residential spending is 10% above the previous peak in January 2008 (nominal dollars).

Public construction spending is now 4% below the peak in March 2009, and 20% above the austerity low in February 2014.

Construction Spending increased in JanuaryThe second graph shows the year-over-year change in construction spending.

On a year-over-year basis, private residential construction spending is down 6%. Non-residential spending is up 2% year-over-year. Public spending is up 8% year-over-year.

This was above consensus expectations, however spending for November and December were revised up.
Bill McBride
A full time blogger, Mr. McBride retired as a senior executive from a small public company in the '90s. Mr. McBride holds an MBA from the University of California, Irvine, and has a background in management, finance and economics.

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