Recent data gathered by IHS Global Insight found that U.S. construction spending fell 2.5% in December 2010.
data gathered by
IHS Global Insightfound that U.S.
construction spending fell 2.5% in December 2010. Bad weather played a role in
keeping the number down. Last December was one of the coldest Decembers on
record in the South, one of the wettest in the West and one of the snowiest in
the Northeast and Midwest, according to the National Climatic
nonresidential construction may have hit a bottom in July, but it is too early
to make this call. Most nonresidential construction categories are still
declining, but this decline is being offset by unsustainable increases in electric
power construction. For the 4Q, electric power construction was up a whopping
187% (annual rate), while the remaining categories were down 16% (annual rate).
Total nonresidential construction increased 10% (annual rate) during the
combination of single- and multifamily construction continues to rest at the
bottom, where it has been since mid 2009. These categories are expected to
improve this year, as the economy adds jobs and continues to grow.
components that make up infrastructure spending slipped for the second straight
month - but because of bad weather, one should not read too much into these
year, total construction declined 10.4%. Nonresidential construction (down
23.5%) dropped the most, followed by public construction (down 2.9%) and
residential construction (down 1.5%).
Cold, Snowy Weather Drags Down Construction Spending
February 1, 2011