January 2022 Construction Spending

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Construction spending during January 2022 was estimated at a seasonally adjusted annual rate (SAAR) of $1,677.2 billion, 1.3% (±0.8%) above the revised December estimate of $1,655.8 billion (originally $1,639.9 billion); expectations were for a 0.2% decrease. The January figure is 8.2% (±1.2%) above the January 2021 SAAR of $1,549.8 billion; the not-seasonally adjusted YoY change (shown in the table below) was +8.4%.

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Private Construction

Spending on private construction was at a seasonally adjusted annual rate of $1,326.5 billion, 1.5% (±0.5%) above the revised December estimate of $1,307.1 billion (originally $1,283.6 billion):
- Residential. $829.4 billion, +1.3% (±1.3%)* of which
- Home improvement. $277.8 billion, +1.4% (+14.4% YoY);
- Nonresidential. $497.2 billion, +1.8% (±0.5%).

Public Construction

Public construction spending was $350.7 billion, 0.6% (±1.5%)* above the revised December estimate of $348.7 billion (originally $352.7 billion):
- Educational. $80.9 billion, virtually unchanged (±1.8%)*;
- Highway. $105.3 billion, -0.1% (±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.