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 3/30/07 For Feb 2007 | ||||||||||||
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Highlights
Construction rebounded in February as outlays rose 0.3 percent in February, following a 0.5 percent drop in January. February's decline was above the market forecast for a 1.0 percent decline in construction outlays. The gain was led by nonresidential and public construction outlays. Residential construction continued to decline. On a year-on-year basis, overall construction outlays edged down to down 2.4 percent in February from down 2.3 percent in January.
As expected, private residential construction fell 1.0 percent in February, following a 1.7 percent drop in January. Private residential construction is down 15.1 percent on a year-on-year basis, compared to down 14.1 percent in January.
Private nonresidential jumped 2.3 percent in February, following dip of 0.3 percent in January. Private nonresidential outlays are up 15.9 percent in February on a year-on-year basis, compared to up 13.2 percent in January.
Nonresidential strength was broad-based. By components nonresidential gains were seen in lodging, up 2.6 percent; commercial, up 1.8 percent; health care, up 0.3 percent; religious, up 1.4 percent; communication, up 6.8 percent; power, up 6.1 percent; manufacturing, up 5.0 percent; educational, up 2.6 percent; and transportation up 1.6 percent.
By components nonresidential declines were seen in office, down 0.2 percent and in amusement, down 3.3 percent.
Public construction was another source of strength in February with a 0.4 percent gain after rising 1.6 percent the prior month. Public construction is up 10.4 percent year-on-year in February, compared to up 11.7 percent in January.
Today's report has no surprises in the residential sector but is comforting for health in nonresidential and public sectors - further adding to today's earlier personal income report that recession is not pending. As such, the report should boost equities and keep downward pressure on bond prices.
Construction spending fell 0.8 percent in January, following a 0.6 percent increase in December. January's figure was weaker than in recent months due to a flattening in nonresidential construction which has been on a moderate uptrend. Residential outlays remained on a decline as expected, while public outlays rose.
Construction spending Consensus Forecast for February 07: -1.0 percent
Range: -1.5 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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