April 2017 Construction Spending

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Construction spending during April 2017 was estimated at a seasonally adjusted annual rate (SAAR) of $1,218.5 billion, 1.4% (±1.0%) below the upwardly revised March estimate of $1,235.5 billion (originally $1,218.3 billion). Analysts had expected a 0.5% increase rather than the reported 1.4% decline; had March’s estimate been left unrevised, the MoM change would have been +0.02%. The April figure is 6.7% (±1.5%) above the April 2016 SAAR of $1,142.5 billion; the not-seasonally adjusted YoY change (shown in the above table) was +6.4%. During the first four months of this year, construction spending amounted to $359.5 billion, 5.8% (±1.3%) above the $339.7 billion for the same period in 2016.

Private Construction

Spending on private construction was at a SAAR of $943.3 billion, 0.7% (± 0.8%)* below the revised March estimate of $949.7 billion.
- Residential: $516.7 billion, -0.7% (±1.3%)*.
- Nonresidential: $426.6 billion, -0.6% (± 0.8%)*.

Public Construction

Public construction spending was $275.3 billion, 3.7% (±2.0%) below the revised March estimate of $285.9 billion.
- Educational: $70.7 billion, -2.0% (±2.6%)*.
- Highway: $89.5 billion, -3.7% (±5.8%)*.

* 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 April’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.