Economy
February construction spending steady, shows solid y/y improvement
Written by Laura Miller
April 2, 2024
US construction spending in February was mostly steady from January but showed significant gains from last year.
The US Census Bureau estimated total construction spending during the month to be $2.0915 trillion at a seasonally adjusted annual rate (SAAR). While comparable to January’s revised spending estimate of $2.097 trillion, this was a rise of nearly 11% from February 2023.
Construction spending amounted to $298.1 billion in the first two months of the year – 12% ahead of the same period in 2023.
February spending on private nonresidential projects reached a SAAR of $716 billion. While a decline of 0.9% from the month prior, it was nearly 13% higher year over year (y/y).
The largest segments within private nonresidential spending showed similar patterns, according to the Associated General Contractors (AGC) of America. While down 0.6% month on month (m/m), manufacturing construction jumped 32% y/y. Commercial construction was down 1.7% m/m but ticked up 1% y/y. Power, oil, and gas project spending dropped 0.5% m/m while rising 7% y/y.
“There were monthly decreases for nearly all types of nonresidential projects,” pointed out Ken Simonson, chief economist at the Associated General Contractors (AGC) of America.
“But every spending segment increased from a year earlier, suggesting the current downturns may reflect short-term challenges such as severe weather, not fading demand,” he noted.
In February, private residential construction spending inched up 0.7% m/m to a SAAR of $901.1 billion.
Spending on public construction projects was 1.2% higher m/m with a February SAAR of $474.4 billion.
Laura Miller
Read more from Laura MillerLatest in Economy
Steel Summit: ITR economist urges execs to prepare for growth, not recession
If the steel industry professionals who made it to the very final presentation of this year’s SMU Steel Summit were expecting another round of cautious forecasting, they were in for a surprise. Because what they got was a wake-up call.
ISM: Manufacturing growth remained down in August
US manufacturing activity remained muted in August despite a marginal gain from July's recent low, according to supply executives contributing to the Institute for Supply Management (ISM)’s latest report.
Steel Summit: Dr. Basu blames tariffs for riskier path ahead
Steel executives packed the main conference hall of the 2025 SMU Steel Summit on Tuesday, Aug. 26, to hear economist Dr. Anirban Basu lay out his blunt view of tariffs, inflation, and demand.
Steel Summit: Schneider sees SDI ‘on the edge of a very good run’
Steel Dynamics Inc. (SDI) President and Chief Operating Officer, Barry Schneider, remains bullish about the Fort Wayne, Ind.-based steelmaker’s position in the current market.
US housing starts gain momentum in July
US housing starts rose in July both month-on-month and year-on-year, according to figures from the US Census Bureau.