econintersect .com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.




Originally posted on 01 February 2011

USA Construction Spending Still Falling

Posted by John Lounsbury or Steven Hansen

Econintersect agrees with the US Census - Construction spending is down in December 2010.   It is down month over month, and year over year whether you use the goverment's methodology (down 2.5%) or Econintersect's (down 1.5%).

The data is terrible.  The best performer of this series was public sector construction which was down only 2.7% in 2010 over 2009.   Private sector construction for 2010 was down 14.3% over 2009.  Note that Econintersect only uses unadjusted data so these numbers will vary from the seasonally adjusted numbers used by other sources.

The U.S. Census Bureau of the Department of Commerce announced today that construction spending during December 2010 was estimated at a seasonally adjusted annual rate of $787.9 billion, 2.5 percent (±1.3%) below the revised November estimate of $807.8 billion. The December figure is 6.4 percent (±1.6%) below the December 2009 estimate of $841.8 billion.

The value of construction in 2010 was $814.2 billion, 10.3 percent (±1.0%) below the $907.8 billion spent in 2009.

PRIVATE CONSTRUCTION - Spending on private construction was at a seasonally adjusted annual rate of $486.9 billion, 2.2 percent (±1.1%) below the revised November estimate of $498.0 billion. Residential construction was at a seasonally adjusted annual rate of $226.4 billion in December, 4.1 percent (±1.3%) below the revised November estimate of $236.1 billion. Nonresidential construction was at a seasonally adjusted annual rate of $260.5 billion in December, 0.5 percent (±1.1%)* below the revised November estimate of $261.9 billion.  The value of private construction in 2010 was $507.3 billion, 14.3 percent (±1.0%) below the $592.3 billion spent in 2009. Residential construction in 2010 was $241.4 billion, 1.7 percent (±2.1%)* below the 2009 figure of $245.6 billion and nonresidential construction was $265.9 billion, 23.3 percent (±1.0%) below the $346.7 billion in 2009.

PUBLIC CONSTRUCTION - In December, the estimated seasonally adjusted annual rate of public construction spending was $301.0 billion, 2.8 percent (±1.8%) below the revised November estimate of $309.8 billion. Educational construction was at a seasonally adjusted annual rate of $68.2 billion, 3.7 percent (±2.9%) below the revised November estimate of $70.8 billion. Highway construction was at a seasonally adjusted annual rate of $84.9 billion, 1.6 percent (±4.2%)* below the revised November estimate of $86.3 billion.

The value of public construction in 2010 was $306.8 billion, 2.7 percent (±1.4%) below the $315.5 billion spent in 2009. Educational construction in 2010 was $74.4 billion, 13.6 percent (±2.7%) below the 2009 figure of $86.1 billion and highway construction was $83.3 billion, 1.7 percent (±3.5%)* above the $81.9 billion in 2009.

Going forward, Econintersect is waiting for construction spending to bottom.  The scary part is that we were expecting the private sector to bottom before the cutbacks on the state levels kicked in.  To date, there is no trend lines indicating private sector construction is bottoming.

Construction, unlike other sectors - has a very large multiplier of jobs creation through the economy.  The continuing collapse of construction spending is putting strong headwinds on jobs.

Listing of all Wordpress posts

Listing by Author for Wordpress posts










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.




Facebook Comment

Econintersect Wordpress Historical




advertisement - our newsletter sponsor

Biggest transfer of Wealth in US history has begun

A Maryland multimillionaire says the biggest legal transfer of wealth in American history has just gotten underway - here is the No. 1 step you must take

More details here...

[Click here to subscribe to our newsletter]








search_box
Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.







Keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government























 navigate econintersect .com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2020 Econintersect LLC - all rights reserved