US construction spending for February 2022 shows:
- Construction spending 0.5% versus 1.0% estimate.
- Seasonally adjusted annual rate of construction comes in at $1704.4 billion versus $1695.5 billion last month
- prior month 1.3% revised to 1.6%
- YoY gain 11.2%
- For the first two months of this year construction spending amounted to $237.8 billion, +10.4% above $215.4 billion for the same period in 2021
- Private construction 0.8%
- Residential construction +1.1% versus January
- Nonresidential construction +0.2% versus January
- Public construction -0.4%
With the cost going up and interest rates also rising, the construction market will certainly be eyed for cracks in the foundation. The data this month was less than expected but the revision was higher. It also is for February. The last month has seen interest rates spike sharply to the upside so the impact might be delayed. Generally speaking construction spending can be a lagging indicator especially in the current environment where supply and demand are out of whack.
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/ Federal Reserve