December 2021 Construction Spending

 

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Construction spending during December 2021 was estimated at a seasonally adjusted annual rate (SAAR) of $1,639.9 billion, 0.2% (± 0.8%)* above the revised November estimate of $1,636.5 billion (originally $1,625.9 billion); expectations were for a 0.7% increase. The December figure is 9.0% (±1.0%) above the December 2020 SAAR of $1,504.2 billion; the not-seasonally adjusted YoY change (shown in the table below) was +8.8%.

The value of construction in 2021 was $1,589.0 billion, 8.2% (±0.8%) above the $1,469.2 billion spent in 2020.

* 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 $1,292.9 billion, 0.7% (±0.5%) above the revised November estimate of $1,283.8 billion (originally $1,273.6 billion):
- Residential. $810.3 billion, +1.1% (±1.3%)* of which
- Home improvement. $274.1 billion, -0.1% (+12.4% YoY);
- Nonresidential. $482.6 billion, virtually unchanged from (±0.5%)* November’s estimate.

The value of private construction in 2021 was $1,242.8 billion, 12.2% (±1.0%) above the $1,107.9 billion spent in 2020. Residential construction in 2021 was $774.9 billion, 23.2% (±2.1%) above the 2020 figure of $628.9 billion and nonresidential construction was $467.9 billion, 2.3% (±1.0%) below the $479.0 billion in 2020.

Public Construction

Public construction spending was $347.0 billion, 1.6% (±1.3%) below the revised November estimate of $352.7 billion (originally $352.3 billion):
- Educational. $81.0 billion, -1.4% (±1.5%)*;
- Highway. $103.5 billion, +0.1% (±3.5%)*.

The value of public construction in 2021 was $346.2 billion, 4.2% (±1.5%) below the $361.2 billion spent in 2020. Educational construction in 2021 was $82.4 billion, 7.6% (±3.0%) below the 2020 figure of $89.1 billion and highway construction was $99.7 billion, 0.2% (±3.6%)* above the $99.5 billion in 2020.

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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.