by Calculated Risk on 2/01/2023 10:22:00 AM

From the Census Bureau reported that overall construction spending decreased:

Construction spending during December 2022 was estimated at a seasonally adjusted annual rate of $1,809.8 billion, 0.4 percent below the revised November estimate of $1,817.3 billion. The December figure is 7.7 percent above the December 2021 estimate of $1,681.0 billion.

The value of construction in 2022 was $1,792.9 billion, 10.2 percent above the $1,626.4 billion spent in 2021.
emphasis added

Both private and public spending decreased:

Spending on private construction was at a seasonally adjusted annual rate of $1,427.1 billion, 0.4 percent below the revised November estimate of $1,432.9 billion. ...

In December, the estimated seasonally adjusted annual rate of public construction spending was $382.7 billion, 0.4 percent below the revised November estimate of $384.4 billion.

Click on graph for larger image.

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

Residential (red) spending is 9.3% below the recent peak.

Non-residential (blue) spending is slightly below the peak last month.

Public construction spending is close to the recent peak.

The second graph shows the year-over-year change in construction spending.

On a year-over-year basis, private residential construction spending is up 1.7%. Non-residential spending is up 15.0% year-over-year. Public spending is up 11.7% year-over-year.

This was below consensus expectations of a 0.1% decrease in spending, however construction spending for the previous two months combined were revised up.