Construction spending up 7.1% annually as nine-month streak of increases is snapped
Wayne Grayson | March 1, 2013

shutterstock_98446952A nine-month string of increases in revised construction spending figures was snapped in January, falling 2.1 percent from December 2012 to a preliminary figure of $883.2 billion.

Despite the dip, spending remains 7.1 percent higher than January 2012, according to seasonally-adjusted data released by the United States Census Bureau.

Residential construction stalled from December to January, but the $311.1 billion figure is 21.1 percent higher than it was in January 2012. Nonresidential spending fell 3.3 percent month-to-month to $572.1 billion. That mark is 0.8 percent higher than one year ago.

Among the nonresidential market, lodging saw a major spending improvement in the past year with an 11.6 percent increase to $10.7 billion. Transportation also had a large yearly gain with a 12.5-percent increase to $39 billion.

Associated General Contractors of America chief economist Ken Simonson commented on the figures, saying the month-to-month dip in spending shouldn’t be taken at face value.

“At first glance, January was a bad month for construction, with a sharp drop in private nonresidential spending, along with small dips in residential and public construction,” Simonson said in a prepared statement. “However, the January figure was higher than the year-ago level. Moreover, steep upward revisions today in the preliminary numbers for November and December suggest January may ultimately prove to have been positive, as well.”

From our partners

There are no comments

Your email address will not be published. Required fields are marked *