by Calculated Risk on 3/01/2010 10:30:00 AM

Private residential construction spending was up slightly in January, but is mostly moving sideways. I expect some growth in residential spending in 2010, but the increases will probably be sluggish until the large overhang of existing inventory is reduced.

Non-residential spending decreased in January, and is now at the lowest level since November 2006. The collapse in non-residential construction spending continues ...

Click on graph for larger image in new window.

The first graph shows private residential and nonresidential construction spending since 1993. Note: nominal dollars, not inflation adjusted.

Residential construction spending increased slighltly in January, and nonresidential spending declined.

Private residential construction spending is now 61.4% below the peak of early 2006.

Private non-residential construction spending is 25.8% below the peak of late 2008.

The second graph shows the year-over-year change for private residential and nonresidential construction spending.

Nonresidential spending is off 19.9% on a year-over-year (YoY) basis.

Residential construction spending is down 6.4% from a year ago, and the negative YoY change is getting smaller.

Residential spending will probably exceed non-residential spending later this year - mostly because of continued declines in non-residential spending as major projects are completed.

Here is the report from the Census Bureau: January 2010 Construction at $884.1 Billion Annual Rate