1 minute reading time (171 words)

Record Construction Spending Starts 2020

Construction spending in the U.S. hit a record high to start 2020. Total construction spending improved 1.8% in January from the revised December data, according to a Census Bureau release earlier this week. The increase is the most in roughly two years, and the $1.369 trillion is a record high. Spending is also 6.8% higher in January than it was in January 2019.

"Mild weather and low rates are giving construction a boost," according to Wells Fargo Securities' release. "However, the coronavirus may soon push up material prices and hamper activity. … Supply chain disruptions stemming from COVID-19 may exert upward pressure on a wide array of imported materials prices, ranging from steel and cement to fixtures and furnishings."

Private spending jumped 1.5% from December, boosted by residential construction's 2.1% uptick. Nonresidential spending also improved, albeit at a slower rate of 0.8%. Meanwhile, public construction spending increased 2.6% in January, led by highway construction, which was up 5.4% in January.

-Michael Miller, managing editor

Strategic Global Intelligence Brief for March 4, 2...
Strategic Global Intelligence Brief for March 2, 2...

Related Posts



No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Wednesday, 27 September 2023

Captcha Image