Construction Spending in February Unexpectedly Declined, But January Revised Higher
Washington, D.C. (PPD) — Total construction spending was estimated at a seasonally adjusted annual rate of $1,366.7 billion, 1.3% (±0.8%) below the upwardly revised $1,384.5 billion estimate in January.
Forecasts ranged from a low of 0.5% to a high of 1.0%. The consensus forecast was 0.6%. The month of January was revised higher from a gain of 1.8% to 2.8%.
The February figure is 6.0% (±1.2%) above the February 2019 estimate of $1,289.0 billion. During the first two months of this year, construction spending amounted to $193.5 billion, 8.2% (±1.2%) above the $178.8 billion for the same period in 2019.
Private Construction
Spending on private construction was estimated at a seasonally adjusted annual rate of $1,025.8 billion, down 1.2% (±0.7%) from the revised January estimate of $1,038.5 billion.
Residential construction was estimated at a seasonally adjusted annual rate of $564.3 billion in February, down 0.6% (±1.3%) from the revised January estimate of $567.6 billion.
Nonresidential construction was estimated at a seasonally adjusted annual rate of $461.5 billion in February, down 2.0% (±0.7%) from the revised January estimate of $471.0 billion.
Public Construction
The estimated seasonally adjusted annual rate of public construction spending was $340.9 billion, down 1.5% (±1.6%) from the revised January estimate of $345.9 billion.
Educational construction was estimated at a seasonally adjusted annual rate of $79.5 billion, 1.5% (±2.6%) below the revised January estimate of $80.7 billion.
Highway construction was estimated at a seasonally adjusted annual rate of $102.4 billion, down 1.2% (±4.4%) from the revised January estimate of $103.6 billion.
Worth noting again, the month of January was revised higher, which obscures the year-to-date and year-over-year gains.
