Construction Spending Falls -1.1% MoM, -2.3% YoY

Total construction spending fell -1.1% MoM in December. The decline was totally attributable to residential spending which fell -2.7% MoM while non-residential spending was unchanged. Private residential spending fell -2.8% MoM and private non-residential spending fell -1.5% MoM. Public spending for non-residential structures, such as schools and hospitals, rose +14.5% MoM in December. Overall though, Federal government spending declined -1.3% MoM and state and local spending fell even more at -1.5% MoM. On a three month annualized basis, total construction has fallen -4.9%, indicating the pace of decline is accelerating. Again, all of the decline can be attributed to residential housing, which fell -29% annualized over the past three months, while non-residential construction rose 19% annualized. Over the past year, total construction spending has fallen -2.3% YoY, with residential down -20% YoY and non-residential growing +15.7% YoY. In the past twelve months, public spending has risen over 10%, mainly funded at the state and local level. Private investment has declined -6% YoY.