Commerce Department Data Shows New Construction Increased 7.7% YTY in January

The U.S. Census Bureau of the Department of Commerce said construction spending during Feb. 2012 was estimated at a seasonally adjusted annual rate of $808.9 billion, 1.1% below the revised January estimate of $818.1 billion. The February figure is 5.8% above the Feb. 2011 estimate of $764.2 billion. During the first two months of this year, construction spending amounted to $111.3 billion, 7.4% above the $103.7 billion for the same period in 2011. With a 1.7% increase to $42 billion in February, the manufacturing segment had the biggest increase in January of any construction segment.

Private construction. Spending on private construction was at a seasonally adjusted annual rate of $527.3 billion, 0.8% below the revised January estimate of $531.7 billion. Residential construction was at a seasonally adjusted annual rate of $246.5 billion in February, nearly the same as the revised January estimate of $246.4 billion. Nonresidential construction was at a seasonally adjusted annual rate of $280.8 billion in February, 1.6% below the revised January estimate of $285.3 billion. As a whole, the private construction category was up 10.2% YTY, while the public construction category was down -1.4% YTY. The construction segments showing the biggest YTY increases were manufacturing (+39.7%); electric power (+36.2%); and multi-family construction (+25.7%).

Public construction. In February, the estimated seasonally adjusted annual rate of public construction spending was $281.6 billion, 1.7% below the revised January estimate of $286.4 billion. Educational construction was at a seasonally adjusted annual rate of $69.4 billion, 2.5% below the revised January estimate of $71.2 billion.