December 2016 Construction Spending

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Construction spending during December 2016 was estimated at a seasonally adjusted annual rate (SAAR) of $1,181.5 billion, 0.2 percent (±1.0%)* below the revised November estimate of $1,184.4 billion (originally $1,182.1 billion); expectations were for a 0.2% increase. The December SAAR is 4.2 percent (±1.3%) above the December 2015 estimate of $1,133.7 billion. The not-seasonally adjusted YoY change (shown in the above table) was +4.2%.

The value of construction in all of calendar-year 2016 (CY2016) was $1,162.4 billion, 4.5 percent (±1.0%) above the $1,112.4 billion spent in 2015.

PRIVATE CONSTRUCTION

Spending on private construction in December was at a SAAR of $897.0 billion, 0.2 percent (±0.8%)* above the revised November estimate of $894.8 billion. CY2016: $876.3 billion, +6.4 percent (±1.2%).
- Residential construction: $466.9 billion, +0.5 percent (±1.3%)*; CY2016: $456.2 billion, +5.2 percent (±2.1%).
- Nonresidential construction: $430.1 billion, essentially unchanged (±0.8%)* from November. CY2016: $420.1 billion, +7.8 percent (±1.2%)

PUBLIC CONSTRUCTION

Public construction spending in December was $284.5 billion, 1.7 percent (±1.8%)* below the revised November estimate of $289.6 billion. CY2016: $286.0 billion, -1.0 percent (±1.5%)*
- Educational construction: $70.1 billion, -2.2 percent (±2.3%)*; CY2016: $69.7 billion, +4.7 percent (±3.5%).
- Highway construction: $94.3 billion, -0.6 percent (±4.1%)*; CY2016: $91.2 billion, +2.0 percent (±3.5%)*.

* 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.