by Calculated Risk on 4/01/2024 10:19:00 AM

From the Census Bureau reported that overall construction spending increased:

Construction spending during February 2024 was estimated at a seasonally adjusted annual rate of $2,091.5 billion, 0.3 percent below the revised January estimate of $2,096.9 billion. The February figure is 10.7 percent above the February 2023 estimate of $1,889.6 billion
emphasis added

Private spending was unchanged and public spending decreased:

Spending on private construction was at a seasonally adjusted annual rate of $1,617.1 billion, virtually unchanged from the revised January estimate of $1,616.8 billion. ...

In February, the estimated seasonally adjusted annual rate of public construction spending was $474.4 billion, 1.2 percent below the revised January estimate of $480.1 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 7.1% below the recent peak in 2022.

Non-residential (blue) spending is 1.1% below the peak two months ago.

Public construction spending is 1.9% below the peak two months ago.

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

On a year-over-year basis, private residential construction spending is up 6.3%. Non-residential spending is up 12.6% year-over-year. Public spending is up 16.8% year-over-year.

This was below consensus expectations for 0.5% increase in spending, and total construction spending for the previous two months was revised down.  This is probably just the start of weakness for private non-residential construction.