Construction Spending Declines In February

The U.S. Census Bureau of the Department of Commerce announced today that February residential construction was at a seasonally adjusted annual rate of $250.8 billion, 2.1 percent below the revised January estimate of $256.2 billion.

April 01, 2010

The U.S. Census Bureau of the Department of Commerce announced today that February residential construction was at a seasonally adjusted annual rate of $250.8 billion, 2.1 percent below the revised January estimate of $256.2 billion.

Overall February construction spending was estimated at a seasonally adjusted annual rate of $846.2 billion, 12.8 percent below the February 2009 estimate of $970.4 billion. During the first 2 months of this year, construction spending amounted to $116.2 billion, 14.4 percent below the $135.7 billion for the same period in 2009.

Other key points for residential construction include:

  • Residential construction spending is down 3.8% from a year ago, but the year-over-year drops are shrinking.
  • Private residential construction spending has turned down again over the last few months. 2010 increases will be hampered by the excessive existing inventory.
  • Private residential construction spending is now 62.9% below the peak of early 2006.

Because of continued declines in non-residential spending as major projects are completed, late 2010 residential spending will probably exceed non-residential spending.

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