December 2019 Construction Spending

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Construction spending during December 2019 was estimated at a seasonally adjusted annual rate (SAAR) of $1,327.7 billion, 0.2% (± 0.8%)* below the revised November estimate of $1,329.9 billion (originally $1,324.1 billion); consensus expectations were for +0.5%. The December figure is 5.0% (±1.3%) above the December 2018 SAAR of $1,264.8 billion; the not-seasonally adjusted YoY change (shown in the table below) was +5.2%.

The value of construction in 2019 was $1,303.5 billion, 0.3% (±1.0%)* below the $1,307.2 billion spent in 2018.

* 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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Private Construction

Spending on private construction was at a SAAR of $991.2 billion, 0.1% (±0.5%)* below the revised November estimate of $992.2 billion (originally $985.5 billion):
- Residential: $540.7 billion, +1.4% (±1.3%);
- Nonresidential: $450.5 billion, -1.8% (±0.5%).

The value of private construction in 2019 was $974.7 billion, 2.5% (±1.0%) below the $1,000.2 billion spent in 2018.
- Residential: $514.3 billion, 4.7% (±2.1%) below the 2018 figure of $539.6 billion;
- Nonresidential: $460.4 billion, virtually unchanged from (±1.0%)* the $460.5 billion in 2018.

Public Construction

Public construction spending was $336.4 billion, 0.4% (±1.3%)* below the revised November estimate of $337.7 billion (originally $338.6 billion):
- Educational: $80.4 billion, -2.1% (±2.1%)*;
- Highway: $99.9 billion, +3.1% (±3.1%)*.

The value of public construction in 2019 was $328.8 billion, 7.1% (±1.8%) above the $307.1 billion spent in 2018:
- Educational: $79.0 billion, 3.4% (±3.6%)* above the 2018 figure of $76.4 billion;
- Highway: $98.8 billion, 8.8% (±4.6%) above the $90.8 billion in 2018. 

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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.