March 2010 Value of Construction Put in Place: More Down than Up

Click on graph for larger image

The value of construction put in place advanced slightly (0.2 percent) in March, primarily because of a 2.3 percent jump in the value of public construction. Both categories of private construction declined in March.

The year-over-year decline in total construction is gradually slowing, but remained around 12 percent in March. The overall rate of retreat would have been even greater were it not for private residential construction having stabilized during the past year. In fact, residential construction is the only category “in the black” on an annual change basis.

Click on table for larger image

As we indicated in our May 3 blog entry Consumers Lead the Way on 1Q2010 GDP Growth, the lack of a strong bounce in residential construction calls into question the robustness of the recovery – and its sustainability.