Construction Spending Spiked in January

Construction Spending Spiked in January

US construction spending spiked in January, with investment in public projects rising to a more than 8-year high, which could boost economic growth estimates for the first quarter.

The US Commerce Department said on Wednesday that construction spending jumped 1.3%, the largest increase since last April, after a revised 0.8% fall in December.

Economists polled by had forecast construction spending rising 0.4 percent in January after a previously reported 0.6 percent drop in December.

Construction spending increased 0.3% on a Y-Y basis in January. The release of the January report was delayed by a 5-week partial shutdown of the government that ended on 25 January.

The February construction spending report will be published on 1 April as scheduled.

In January, investment in public construction projects increased 4.9% to its highest level since September 2010. The percent increase was the largest since March 2004 and followed a 1.0% fall in December.

Spending on federal government construction projects increased 4.2% to the highest level since October 2017 after falling 1.9% in December. Investment in state and local government construction projects rose 4.9% to a 9.5-year high after falling 1.0% prior.

Spending on private construction projects rose 0.2% in January after declining for 2 months running. Investment in private residential projects dropped 0.3%, falling for the 6th month running.

Spending on private nonresidential structures, which includes manufacturing and power plants, rose 0.8% in January after increasing 0.6% in December.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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