• 2 days 3 Semiconductor Stocks Looking Great On EV Demand
  • 4 days Robinhood’s $40B March IPO Is In Grave Danger
  • 5 days Are Bots Responsible For GameStop’s Massive Runup? 
  • 6 days Learning From Buffett’s $11 Billion Mistake
  • 9 days The Token Boom Spawns Digital Gold Mine in Art, Collectibles
  • 9 days The “Oil Of The Future” Is Set To Soar In 2021
  • 10 days Wealthy Could End Up Footing The Bill For States’ Budget Shortfalls
  • 10 days Could This Be The Hottest Commodity Play Of 2021?
  • 11 days JP Morgan Says Fintech Will Steal The Disruptor Show
  • 13 days Facebook Plays Dirty Down Under
  • 13 days Could This Be The Most Exciting Lithium Play Of 2021?
  • 16 days China Sidelines US As EU’s New Top Trading Partner
  • 18 days 3 Smart Ways To Play the Global Chip Shortage
  • 19 days Flying Taxis Are The Number One Speculative Bull Arena
  • 20 days Ocean Power: The Missing Link
  • 25 days Luxembourg’s Ultra-Secrecy Still Attracts Hundreds Of Billionaires
  • 26 days Robinhood Is Under Fire And Trading ‘Democracy’ Is In Question
  • 27 days Bitcoin Could Be Worth $12 Trillion In The Long-Term
  • 28 days The Biggest Tech IPO Since Uber … For Farmers
  • 30 days The Biggest Boost Yet for the Cannabis Industry
How Millennials Are Reshaping Real Estate

How Millennials Are Reshaping Real Estate

The real estate market is…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Market Sentiment At Its Lowest In 10 Months

Market Sentiment At Its Lowest In 10 Months

Stocks sold off last week…

  1. Home
  2. Markets
  3. Other

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