U.S. Construction Spending Rebounds in March
by:Tom Moeller
|in:Economy in Brief
Summary
- Residential building continues to decline.
- Nonresidential building moves up for third straight month.
- Public sector building growth slows.
The value of construction put in place increased 0.3% during March after falling 0.3% in February, revised from -0.1%, according to the U.S. Census Bureau. The y/y increase weakened to 3.8%, down from an 11.7% y/y high last February. A 0.1% March increase had been expected in the Action Economics Forecast Survey.
Private construction rose 0.3% (1.0% y/y) in March after declining in each of the prior three months. Residential private construction eased 0.2% (-10.0% y/y), the tenth straight monthly fall, after a 1.5% February decline. Single-family building weakened 0.8% (-22.9% y/y), the tenth consecutive decline, after a 1.6% February drop. Multi-family building, however, rose 0.4% (23.0% y/y), the ninth rise in the last ten months. Home improvements improved 0.3% (-2.0% y/y) following two months of sharp decline.
Private nonresidential construction improved 1.0% (21.3% y/y) in March, the tenth gain in 11 months, after a 0.4% February improvement. The latest gain reflected a 4.6% surge (62.5% y/y) in manufacturing construction and a 1.5% gain (17.9% y/y) in education construction. Lodging building rose 0.3% (38.9% y/y) and amusement construction improved 0.4% (14.9% y/y). Working lower, transportation building fell 1.1% (+33.8% y/y) and communication building fell 0.5% (+4.8% y/y) while power construction dropped 0.3% (-4.7% y/y).
The value of public construction edged 0.2% higher (15.0% y/y) in March following a 1.1% gain. Residential public construction rose 0.8% (9.7% y/y) while nonresidential public construction rose 0 2% (15.1% y/y). Commercial construction rose 0.7% (25.7% y/y) and water supply building rose 1.1% (25.5% y/y). Educational building gained 0.7% (9.1% y/y) while conservation & development surged 12.4% (25.8% y/y). Transportation construction declined 1.6% (+4.8% y/y) and highway & street building eased 0.1% (+21.4% y/y). Water supply construction rose 1.1% (25.5% y/y) and waste disposal building increased 0.7% (24.2% y/y).
The construction figures can be found in Haver's USECON database. The expectations figure is from the Action Economics Forecast Survey in AS1REPNA.
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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