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 1/31/07 For Dec 2006 | ||||||||||||
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Highlights
Construction spending fell 0.4 percent in December, following a 0.1 percent rise in November. December's decline was well below the consensus expectation for a 0.1 percent rise in construction outlays. On a year-on-year basis, overall construction outlays declined to down 1.4 percent in December from flat in November.
December's fall was led by private residential construction. Private nonresidential and public outlays posted healthy gains. Private residential construction fell 1.6 percent in December, following a 1.4 percent drop in November. In the latest month, single-family housing outlays declined 2.2 percent while the multifamily components fell a similar 2.3 percent. Private residential construction was down 12.5 percent on a year-on-year basis, compared to down 10.7 percent in November.
Private nonresidential outlays advanced 0.9 percent in November, following a 1.4 percent jump in November. Private nonresidential outlays are up 14.5 percent in December on a year-on-year basis, compared to up 16.2 percent in November. Within private nonresidential construction, gains were widespread.
By components nonresidential gains were seen in lodging, up 0.2 percent; office, up 1.4 percent; commercial, up 1.5 percent; health care, up 2.1percent; educational, up 1.4 percent; religious, up 2.7 percent; manufacturing, up 5.2 percent; and transportation up 3.3 percent.
By components nonresidential declines were seen in amusement, down 3.0 percent, and in communication, down 14.8 percent. The power component was flat.
Public construction rose 0.6 percent in December, following a 2.2 percent spike in November. Public construction is up 10.5 percent year-on-year, compared to up 10.9 percent in November.
Today's report shows a continuation of recent trends. Housing is still negative as outlays will not turn up until starts have been up for a while. Nonresidential and public outlays remain healthy. These numbers are in line with a soft landing scenario.
Construction spending slipped 0.2 percent in November, following a 0.3 percent dip in October. November's decline was led by private residential construction as both private nonresidential and public outlays posted gains. More recently, we have seen a pick up in housing starts and that may translate into a boost in residential outlay - which would lead to a sizeable increase in overall outlays if nonresidential and public outlays hold up. However, any boost in residential outlays would essentially be a weather-related event tied to an unseasonably warm and dry winter thus far.
Construction spending Consensus Forecast for December 06: 0.1 percent
Range: -0.4 to +1.2 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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