December 2023 Construction Spending

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Construction spending during December 2023 was estimated at a seasonally adjusted annual rate (SAAR) of $2,096.0 billion, 0.9% (± 0.8%) above the revised November estimate of $2,078.3 billion (originally $2,050.1 billion); expectations were for +0.5%. The December figure is 13.9% (±1.5%) above the December 2022 SAAR of $1,840.9 billion; the not-seasonally adjusted YoY comparison (shown in the table below) is +14.5%.

The value of construction in 2023 was $1,978.7 billion, 7.0% (±1.0%) above the $1,848.7 billion spent in 2022.

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Private Construction

Spending on private construction was at a seasonally adjusted annual rate of $1,619.7 billion, 0.7% (±0.7%)* above the revised November estimate of $1,608.0 billion (originally $1,595.0 billion):
- Residential. $911.7 billion, +1.4% (±1.3%) of which
- Home improvement. $348.3 billion, +1.7% (+2.3% YoY);
- Nonresidential. $708.0 billion, -0.2% (±0.7%)*.

The value of private construction in 2023 was $1,541.0 billion, 4.7% (±1.2%) above the $1,472.4 billion spent in 2022. Residential construction in 2023 was $864.9 billion, 5.8% (±2.1%) below the 2022 figure of $917.9 billion and nonresidential construction was $676.0 billion, 21.9% (±1.2%) above the $554.5 billion in 2022.

Public Construction

Public construction spending was $476.3 billion, 1.3% (±1.5%)* above the revised November estimate of $470.3 billion (originally $445.1 billion):
- Educational. $100.3 billion, -0.1% (±2.1%)*;
- Highway. $151.2 billion, +4.1% (±3.6%).

The value of public construction in 2023 was $437.7 billion, 16.3% (±1.6%) above the $376.3 billion spent in 2022. Educational construction in 2023 was $93.0 billion, 11.9% (±3.6%) above the 2022 figure of $83.1 billion and highway construction was $133.6 billion, 18.0% (±3.9%) above the $113.3 billion in 2022.

* 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 December’s new residential permits, starts and completions, and 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.