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    Constructionspending 9-1-11

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    Jessica Kister-Lombardo
    Construction spending dropped 1.3% in July after large upward revisions to substantial gains in May and June. Construction spending is now 0.1% above its year ago level, its first positive year-on-year gain.

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    Constructionspending 9-1-11

    Uploaded by

    Jessica Kister-Lombardo
    61 views1 page
    Construction spending dropped 1.3% in July after large upward revisions to substantial gains in May and June. Construction spending is now 0.1% above its year ago level, its first positive year-on-year gain.

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    constructionspending 9-1-11

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    Construction spending dropped 1.3% in July after large upward revisions to substantial gains in May and June. Construction spending is now 0.1% above its year ago level, its first positive year-on-year gain.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    61 views1 page

    Constructionspending 9-1-11

    Uploaded by

    Jessica Kister-Lombardo
    Construction spending dropped 1.3% in July after large upward revisions to substantial gains in May and June. Construction spending is now 0.1% above its year ago level, its first positive year-on-year gain.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    BIG DECLINE AFTER LARGE UPWARD REVISIONS

    Construction Spending Thursday September 1, 2011


    3 2 1 Monthly % Change 0 -1 -2 -3 -4 -5 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11
    Monthly % Change Year-on-Year % Change

    12 8 4 0 -4 -8 -12 -16 -20 Yearly % Change

    Construction spending dropped 1.3% in July after large upward revisions to substantial gains in May and June. Construction spending is now 0.1% above its year ago level, its first positive year-on-year gain following 44 straight months of year-on-year declines. Nevertheless, construction spending remains 34.9% below its March 2006 peak. Residential construction spending fell 1.4% in July but is up 5.3% from its year ago level. Residential construction spending troughed in July 2009 and is now 8.2% above that cyclical nadir. A rebound will be dependent on reduction of the current large inventory of existing homes. Nonresidential construction spending fell 0.4% in June amid mixed industry performance. Although nonresidential construction spending is up 5.7% over the last year, it is still trending lower overall. Public construction expenditures fell 2.1% in July and are now down 8.8% on the year. A major weak spot in construction spending continues to be the public sector. Fading stimulus dollars and difficult budget positions for many state and local governments significantly downgrade the outlook for public spending going forward. Of the other two categories of spending in the private sector, residential construction spending looks to have stabilized at a weak level while the downward trend in non-residential investment is slowing significantly. Even with much slower declines, private construction spending is not strong enough yet to contribute positively to the economy recovery.
    Forecast: Consensus**: Actual: 0.5% 0.2% -1.3% Monthly % Change Relative Weight* Jul-11 100.0% -1.3 Jun-11 1.6 0.2 2.0 1.1 2.9 2.1 0.0 3.1 3.2 5.3 0.8 1.0 -0.4 1.4 May-11 2.5 0.3 4.2 4.5 3.9 4.7 8.1 6.0 -0.5 1.3 -0.5 -0.6 0.0 -0.6 PERCENT CHANGE Annual Rates of % Change for Three Six Twelve Five Month Month Month 2010 2009 Year 11.6 4.6 0.1 -6.0 -16.2 -8

    Ten Year -0.4

    Construction Spending Previous estimate Private Construction Residential Nonresidential Commercial Power Office Health Care All Other Public Construction Education Highways & Streets All Others

    65.2% 31.4% 33.7% 5.2% 9.5% 3.0% 3.8% 12.2% 34.8% 8.5% 9.5% 16.8%

    -0.9 -1.4 -0.4 1.9 0.5 0.1 1.3 -2.5 -2.1 -4.3 0.5 -2.3

    23.2 17.6 28.6 40.6 39.4 42.9 17.1 17.0 -6.7 -15.1 0.4 -6.0

    13.9 9.0 18.7 24.8 21.3 11.8 20.1 15.6 -10.0 -7.8 -12.6 -9.6

    5.5 5.3 5.7 13.2 22.0 4.0 -2.1 -4.2 -8.8 -12.8 -3.8 -9.3

    -8.1 -6.3 -9.7 -14.3 11.1 -19.4 -1.8 -20.1 -2.1 -10.6 5.1 -1.5

    -21.9 -15.0 -27.0 -40.6 -5.2 -43.5 -21.9 -27.1 -3.7 -10.3 -3.0 -0.2

    -12.2 -19.1 -1.0 -13.2 19.4 -9.7 0.7 -1.6 4.0 -0.5 4.5 6.3

    -2.4 -4.0 -0.8 -5.7 10.6 -8.9 4.2 -1.8 4.7 #N/A #N/A #N/A

    Source: Bureau of the Census, Department of Commerce via Haver Analytics. Data, graph & table courtesy of Insight Economics, LLC. **Bloomberg 2011 HousingMatrix, Inc. | http://www.HousingMatrix.com | All rights reserved. Reproduction and/or redistribution are expressly prohibited. Hot Sheet is a registered trademark of HousingMatrix, Inc. Information herein is based on sources we believe to be reliable, but its accuracy is not guaranteed.

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