"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 14 hours Is This The Death Of The iPhone X?
  • 15 hours Is London Still The Financial Capital Of The World?
  • 16 hours Is Gold Staging A Comeback?
  • 17 hours The $200 Million ‘Golden Parachute’ For Rupert Murdoch
  • 18 hours Bitcoin’s Breakout Is Not As Bullish As it Seems
  • 20 hours Farmers On Edge As Trade War Hits U.S. Grain Shipments
  • 22 hours Is Silver Poised For A Massive Break Out?
  • 2 days Meet The Hedge Fund Billionaires Club
  • 2 days The Next Housing Crisis Could Be Right Around The Corner
  • 2 days Cartel's, Pirates And Corruption Cost Mexico $1.6 Billion Per Year
  • 2 days Africa’s Fastest Growing Economy
  • 2 days The Blockchain Boom Hits The Utilities Sector
  • 2 days Why Smart Money Is Selling Off Right Before The Bell
  • 2 days Tech Giants Rally Ahead Of Earnings Reports
  • 3 days Global Debt Hits 225% Of GDP
  • 3 days The World’s First Trillionaire Will Be A Space Miner
  • 3 days How Student Debt Could Cause The Next Real Estate Crisis
  • 3 days This $550 Billion Industry Is Betting On Bitcoin
  • 3 days One Commodity Set To Soar On Russian Sanctions
  • 3 days China’s New Car-Market Rules
Oligarch Risk: The New Red Flag For Investors

Oligarch Risk: The New Red Flag For Investors

Investors are scrambling to diversify…

Is This The Death Of The iPhone X?

Is This The Death Of The iPhone X?

Apple’s stock has slipped more…

Construction Spending Rises 0.8% vs. 1.0% Expectation: Nonresidential Rolling Over?

Construction spending, up 0.8% in February, was a bit weaker than the Bloomberg Econoday Consensus estimate of 1.0%.

However, the Census Department revised January from -1.0% to -0.4% so the report was a bit stronger than it appears on the surface.

Construction strength is not uniform.


Total Construction Spending in Millions of Dollars

Total Construction Spending


Total Construction Spending Percent Change From Year Ago

Total Construction Spending Percent Change From Year Ago

Year-over-year residential construction spending is up 6.16% but nonresidential construction is up only 0.95%.


Construction Spending by Type

Construction Spending by Type
Larger Image

Multi-family residential is doing much better than single-family. The latter is more important as it hints at family formation.


Commercial Spending

Total Construction Spending: Commercial

Commercial spending is a strong indicator of future hiring.

As long as Walmart, Target, McDonalds, etc. keep building stores, the economy is likely to keep adding jobs. Nonetheless, spending is still below pre-recession levels.

Also, growth in online spending is crushing store spending and minimum wage hikes have taken a bite out of profits as well.

How much longer the commercial buildout can keep rolling on remains a key question.

Finally, these construction spending reports are very volatile and subject to huge revisions. So take all these numbers with a huge dose of skepticism.

 

Back to homepage

Leave a comment

Leave a comment