March 2017 Construction Spending

Click image for larger view 

Click image for larger view

Construction spending during March 2017 was estimated at a seasonally adjusted annual rate (SAAR) of $1,218.3 billion, 0.2% (±2.1%)* below the revised February estimate of $1,220.7 billion (originally $1,192.8 billion); analysts had expected a 0.5% increase rather than the reported 0.2% decline. The March figure is 3.6% (±1.5%) above the March 2016 SAAR of $1,176.4 billion; the not-seasonally adjusted YoY change (shown in the above table) was +4.5%. During 1Q2017, construction spending amounted to $259.5 billion, 4.9% (±1.6%) above the $247.5 billion for the same period in 2016.

Private Construction

Spending on private construction was at a SAAR of $940.2 billion, nearly the same as (± 3.3%)* the revised February estimate of $940.1 billion.
- Residential: $503.4 billion, +1.2% (±1.3%)*.
- Nonresidential: $436.8 billion, -1.3% (± 3.3%)*.

Public Construction

Public construction spending was $278.1 billion, 0.9% (±2.0%)* below the revised February estimate of $280.7 billion. 

- Educational: $70.2 billion, -2.0% (±2.6%)*.
- Highway: $91.5 billion, +0.5% (±4.9%)*.

* 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. 

Click image for larger view

Click here for a discussion of March’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.