1 minute reading time (213 words)

US Construction Spending Nears Record Rate

U.S. construction spending is nearing its highest rate on record, according to the latest release from the Census Bureau. Construction spending increased 1% in February to a seasonally adjusted annual rate of $1.32 trillion, one of the highest rates on record (since 2002). Spending is also 1.1% above February 2018.

In 2019 alone, construction spending totaled nearly $182 billion, which is 1.4% higher than January and February of 2018 combined. Much of the climb in February is due to the large jump in public construction—$325.8 billion, 3.6% ahead of January.

Within public spending, educational construction was up 0.8% from January, and highway construction increased 9.5% from the month prior. Government construction hit an all-time high at $303 billion, states the Associated Press. Private construction was led by a 0.7% increase in residential spending, pushing total private spending to $994.5 billion in February, a 0.2% increase. Nonresidential private construction, despite a slight decline, had its best February on record.

"Construction outlays are volatile during winter months, but spending appears to be building momentum headed into the spring," states a release from Wells Fargo Securities. "The return of more typical winter weather likely dragged down spending [in the residential sector]."

Economists had expected a 0.2% drop in February, according to Reuters.

-Michael Miller, managing editor

Strategic Global Intelligence Brief for April 1, 2...
Strategic Global Intelligence Brief for March 29, ...

Related Posts



No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Saturday, 24 July 2021