Construction Spending Unexpectedly Gains Again in February, Beating Forecasts

January Construction Spending Revised Even Higher, From 1.3% to Strong 2.5%

Construction spending continued to gain solidly during February, gaining 1.0% to a seasonally adjusted annual rate of $1,320.3 billion. That’s (±0.8%) above the revised January estimate of $1,307.3 billion, and beating the forecast range.

The consensus forecast was calling for a -0.2% reading, ranging from a low of -1.0% to a high of 0.4%.

The February figure is 1.1% (±1.5%) above the February 2018 estimate of $1,305.5 billion. During the first two months of this year, construction spending amounted to $181.9 billion, 1.4% (±1.3%) above the $179.4 billion for the same period in 2018.

The month of January was revised even higher from 1.3% to a very strong 2.5%.

Private Construction

Spending on private construction was at a seasonally adjusted annual rate of $994.5 billion, 0.2% (±0.8%) above the revised January estimate of $993.0 billion. Residential construction was at a seasonally adjusted annual rate of $540.9 billion in February, 0.7% (±1.3%) above the revised January estimate of $536.9 billion.

Nonresidential construction was at a seasonally adjusted annual rate of $453.6 billion in February, 0.5% (±0.8%) below the revised January estimate of $456.0 billion.

Public Construction

In February, the estimated seasonally adjusted annual rate of public construction spending was $325.8 billion, 3.6% (±1.6%) above the revised January estimate of $314.4 billion.

Educational construction was at a seasonally adjusted annual rate of $76.3 billion, 0.8% (±2.0%) above the revised January estimate of $75.7 billion. Highway construction was at a seasonally adjusted annual rate of $111.1 billion, 9.5% (±5.3%) above the revised January estimate of $101.5 billion.