Residential Construction Spending Up 6.4 Percent Annually

Spending on residential buildings fared better than overall construction spending in February.  The U.S. Census Bureau said on Monday that expenditures for all construction was at a seasonally adjusted annual rate of $1.19 trillion during the month, an 0.8 percent increase from the January estimate of 1.18 trillion (revised from 1.0 trillion).  February spending was at a rate 3.0 percent higher than the $1.16 trillion rate in February 2016.

On a non-adjusted basis, total spending during the month was $81.78 billion.  Over the first two months of 2017 total expenditures totaled $163.2 billion, 3.0 percent year-over-year growth.

Analysts polled by Econoday were looking for expenditures to rise by1.0 percent from January although the estimates covered a wide range, from a 0.7 percent decline to a 1.8 percent, increase.

Privately funded construction spending was estimated at an annual rate of $917.3 billion, up 0.8 percent for the month and 6.9 percent year-over-year. On a non-adjusted basis, there was $64.54 billion spent and year-to-date expenditures were up 6.5 percent from the same period in 2016.

Residential spending had better numbers.  Total spending was at a rate of $484.67 billion compared to $476.15 billion in January, a 1.8 percent gain, and up 6.4 percent from February 2016.  Single family spending rose 1.2 percent from January to $257.50 billion, a year-over-year increase of 3.4 percent.  On a non-adjusted basis, the new single-family construction figure for the month was $17.0 billion.  Spending through the first two months of the year was up 3.1 percent from the comparable period in 2016.

Multi-family spending continues strong, rising 2.0 percent to a seasonally adjusted $64.48 billion which is 10.6 percent higher than in February 2016.  Year-to-date spending is 8.5 percent higher, at $9.81 billion, than a year earlier.

Private sector increases were largest for commercial construction, up 24.8 percent on an annual basis; The largest decrease was in the transportation sector, down by 11.2 percent.

Publicly funded construction was up by 0.6 percent from January to 275.50 billion but was 8.0 percent lower than in February 2016.  The only construction sectors to show any increases year-over-year were education, up 0.5 percent, and amusement and recreation, with a 3.6 percent increase.  The biggest losers were the power sector, down 36.5 percent, and sewage and waste disposal which declined by 27.3 percent.