January 2017 Construction Spending

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Construction spending during January 2017 was estimated at a seasonally adjusted annual rate (SAAR) of $1,180.3 billion, 1.0 percent (±1.0%)* below the revised December estimate of $1,192.2 billion. The January figure is 3.1 percent (±1.5%) above the January 2016 estimate of $1,144.9 billion; the not-seasonally adjusted YoY change (shown in the above table) was +3.4%.

PRIVATE CONSTRUCTION

Spending on private construction was at a SAAR of $911.6 billion, 0.2 percent (±0.8%)* above the revised December estimate of $909.4 billion.
- Residential construction: $476.4 billion, +0.5 percent (±1.3%)*.
- Nonresidential construction: $435.3 billion, essentially unchanged (±0.8%)*.

PUBLIC CONSTRUCTION

Public construction spending was $268.7 billion, 5.0 percent (±1.8%) below the revised December estimate of $282.8 billion.
- Educational construction: $69.2 billion, -2.7 percent (±2.5%).
- Highway construction: $86.7 billion, -3.3 percent (±4.1%)*.

* 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 January’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.