• 4 days 3 Restaurant Stocks In Full Recovery Mode
  • 4 days Bitcoin Is Driven By Testosterone
  • 9 days Quantum Computing Is The Newest Megatrend In Silicon Valley
  • 10 days How To Invest In The Cybersecurity Boom
  • 12 days Investors Are Patient With Unprofitable Giants
  • 14 days Wells Fargo Back In The Scandal Spotlight Once Again
  • 16 days 5 Stocks To Keep A Close Eye On This Year
  • 17 days As Auto Giants Flail, Look To Chip Stocks For Gains
  • 18 days Central America Is Ready For The Bitcoin Hustle
  • 20 days China’s Video Game Restrictions Unlikely To Slow Down Booming Industry
  • 21 days Top Performing Stocks As Inflation Fears Grow
  • 22 days US Airline Stocks Take A Beating On New EU Restrictions
  • 23 days This IPO Could Open Sustainable Fashion Floodgates
  • 24 days Crypto Crime Nets Another $2B Fraudster
  • 26 days This Week’s Hottest Meme Stocks
  • 27 days Why World Markets Should Be Watching Germany Closely
  • 29 days Could ‘Cultured’ Meat Rival The Plant-Based Megatrend?
  • 31 days ‘Easy Money’: Crypto Is Still Attracting Newbie Investors
  • 33 days Foreign Syndicates May Have Stolen Up To $400B In COVID Benefits
  • 34 days Gold Jumps Above $1800 Ahead Of Jackson Hole Summit
  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