December 2015 Construction Spending

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Construction spending during December 2015 was estimated at a seasonally adjusted annual rate (SAAR) of $1,116.6 billion, 0.1 percent (±1.2%)* above the revised November estimate of $1,116.0 billion. The December SAAR is 8.2 percent (±1.8%) above the December 2014 SAAR of $1,031.6 billion. The YoY percentage change in the not-seasonally adjusted estimates (shown in the above table) was +8.0%

The value of construction in 2015 was $1,097.3 billion, 10.5 percent (±1.2%) above the $993.4 billion spent in 2014.

PRIVATE CONSTRUCTION

Spending on private construction was at a SAAR of $824.0 billion, 0.6 percent (±0.8%)* below the revised November estimate of $828.8 billion. Residential construction: $429.6 billion, 0.9 percent (±1.3%)* above the revised November estimate of $425.8 billion. Nonresidential construction: $394.4 billion, 2.1 percent (±0.8%) below the revised November estimate of $403.0 billion.

The value of private construction in 2015 was $806.1 billion, 12.3 percent (±1.5%) above the $717.7 billion spent in 2014. Residential: $416.8 billion, 12.6 percent (±2.1%) above the 2014 figure of $370.0 billion; nonresidential: $389.3 billion, 12.0 percent (±1.5%) above the $347.7 billion in 2014.

PUBLIC CONSTRUCTION

In December, the estimated SAAR of public construction spending was $292.5 billion, 1.9 percent (±2.0%)* above the revised November estimate of $287.1 billion. Educational construction: $69.4 billion, -0.5 percent (±3.9%)*. Highways: $95.4 billion, +9.4 percent (±4.4%).

The value of public construction in 2015 was $291.2 billion, 5.6 percent (±1.6%) above the $275.7 billion spent in 2014. Educational construction: $67.3 billion, +6.8 percent (±3.5%); highways: $89.6 billion, +6.7 percent (±3.9%).

* 90% confidence interval includes zero. The U.S. Census Bureau does not have sufficient statistical evidence to conclude that the actual change is different from zero. 

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Click here for a discussion of December’s new residential permits, starts and completions. Click here for a discussion of new and existing home sales, inventories and prices.

The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.