Construction spending drops marginally in January

Construction spending edged down slightly in January, slipping for the first time in four months.

The US Census Bureau estimated spending at a seasonally adjusted annual rate of $2,196 billion in January, down 0.2% from December’s downward revised rate. The January figure is 3.3% higher than a year ago.

January’s result, despite the slight erosion, remains the second-best total in over five years, according to Census data.

Private builds

Overall, private construction outlays were $1,686 billion at a seasonally adjusted annual rate. That’s about 0.2% below the revised December estimate, the report said. Residential construction spending slipped 0.4% month over month to $932.7 billion, while nonresidential construction outlays were virtually flat at $53.3 billion in January.

Public projects

Public construction spending edged 0.1% lower in January to $505.9 billion. Highway construction contributed to the gain, improving 0.6% to $145 billion in January, while educational construction lagged, slipping 0.4% to $109.8 billion.

The chart below shows a rise in spending in recent years, particularly in nonresidential investment.

David Schollaert

David Schollaert is deputy editor-in-chief for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. He can be contacted at david@steelmarketupdate.com or 724-720-1008.