Construction spending, public and private, was at a
seasonally adjusted annual rate of $1.517 trillion in February. The U.S. Census
Bureau said this was down 0.8 percent from the January rate of $1.529 trillion
but was 5.3 percent higher than spending in February 2020. On a non-adjusted
basis there was a total of $105.612 billion worth of construction put in place
during the month, nearly half of which was spent in the residential sector. For
the year-to-date (YTD) overall spending has totaled $213.204 billion, a 4.9
percent increase over the $203.215 billion spent during the first two months of
2020.

Privately funded construction was at a seasonally
adjusted annual rate of $1.166 trillion, down 0.5 percent month-over-month from
$1.172 trillion in January. Spending was 7.1 percent above the rate in February
2020.

Spending on residential construction was at an annual
rate of $717.912 billion with $376.794 of that total going to build
single-family houses. The changes from January were fractional, but residential
construction as a whole was up 21.1 percent from February 2020
and
single-family spending was 20.9 percent higher. Spending on multi-family
construction at $93.156 billion was down 1.4 percent for the month but 14.6
percent higher on an annual basis.

The dominance of the residential sector is apparent in
looking at non-adjusted numbers for February. Total private sector spending was
$83.312 billion and residential spending at $49.192 billion accounted for 59
percent of the total and was about $15 billion higher than the aggregate of all
non-residential spending.

YTD spending in the private sector totaled $168.636
billion, a 6.5 percent increase
over the same period last year. YTD residential
spending is up 22.1 percent at $100.041 billion and spending on single-family
homes rose 25.4 percent.

Publicly funded construction was at an annual rate of
$351.206 billion in February, down 1.7 percent from January and 0.3 percent
year-over-year. Residential construction spending, while in small dollars,
continued the large increases that began in 2020. The annual rate in February
was $9.508 billion, a 24.8 percent annual increase.

By Jann Swanson , dated 2021-04-02 11:25:15

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Courtesy of Mortgage News Daily

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