by Calculated Risk on 3/30/2007 11:42:00 AM

From the Census Bureau: February 2007 Construction Spending at $1,170.8 Billion Annual Rate

The U.S. Census Bureau of the Department of Commerce announced today that construction spending during February 2007 was estimated at a seasonally adjusted annual rate of $1,170.8 billion, 0.3 percent above the revised January estimate of $1,167.7 billion. The February figure is 2.4 percent (±2.2%) below the February 2006 estimate of $1,199.9 billion.

During the first 2 months of this year, construction spending amounted to $159.9 billion, 2.4 percent (±2.2%) below the $163.8 billion for the same period in 2006.

Click on graph for larger image.

This graph shows the YoY change for the three major components of construction spending: Private Residential, Private Non-Residential, and Public.

While private residential spending has declined significantly, spending for both private non-residential and public construction have been strong. This will probably be one of the keys for the economy going forward: Will nonresidential construction spending follow residential "off the cliff" (the normal historical pattern)? Or will nonresidential spending stay strong. I'll revisit this discussion soon.