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Construction spending up 7.8 percent annually in December

Posted By Wayne Grayson On February 1, 2013 @ 10:59 am In Construction News | No Comments


Construction spending increased by 7.8 percent in the year between December 2011 and December 2012, to a three-year high of nearly $885 million, according to seasonally-adjusted data released by the United States Census Bureau.

Month-to-month, the preliminary spending figure of $865.9 million was down 0.9 percent from November 2012’s revised figure of $877 million. The slight dip is the second consecutive month-to-month decrease, Census data shows.

Residential construction saw a big 22.3-percent increase between December 2011 and December 2012 to nearly $314.5 million, while nonresidential construction saw a 1.2-percent increase to $570 million.

Among the nonresidential market, lodging saw a major spending improvement in the past year with a 16.1 percent increase to $11.6 million. Transportation notched a second consecutive big yearly gain with a 13.9-percent increase to $40.5 million. Transportation, however, was down 1.9 percent month-to-month. Power saw an 11.2-percent yearly increase to roughly $94 million.

Some of the largest yearly decreases were sewage and waste disposal, dipping 12.9 percent to approximately $20.7 million; public safety, dropping 12.7 percent to about $9 million; and religious, down 10.1 percent to $3.6 million.

Associated General Contractors of America chief economist Ken Simonson commented on the figures, saying the spending numbers mean good things for construction hiring. The industry added 28,000 jobs in December. [2]

“We are likely to see continued strong growth in single- and multifamily homebuilding, moderate increases in private nonresidential construction and shrinking public investment levels for the next several months,” Simonson said. “Those trends, in turn, will lead to a steady increase in the number of construction jobs.”

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[1] Image: http://www.equipmentworld.com/files/2013/02/shutterstock_67472749.jpg

[2] The industry added 28,000 jobs in December.: http://www.equipmentworld.com/construction-adds-28000-jobs-in-january/

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