Skip to main content

Construction Spending Down Slightly

Phil Hall
Feb 04, 2020
Photo credit: Getty Images/Maudib

Construction spending recorded a mild 0.2 percent decline from November to December, with single-family homebuilding helping to stave off a greater decrease, according to a new analysis of federal data released today by the Associated General Contractors of America.
During December, construction spending totaled $1.328 trillion at a seasonally adjusted annual rate. Compared to one year earlier, spending was up by 5 percent. Private residential spending increased 1.4 percent for the month, fueled by a 2.7 percent increase in single-family homebuilding. But private nonresidential spending dropped by 1.8 percent from the previous month and was a wispy 0.1 percent lower than the December 2018 level. Public construction spending was down 0.4 percent from November but jumped 11.5 percent from a year earlier.
For the full year of 2019, spending totaled $1.303 trillion, down 0.3 percent from the 2018 total. Private residential spending declined 4.7 percent for the year, private nonresidential spending was flat, and public construction spending increased 7.1 percent.
“Both the actual spending totals for December and our members’ expectations for 2020 point to a positive year for all major categories of construction,” said Ken Simonson, the association’s chief economist. “Continuing job gains throughout the nation, along with low interest rates, make a good year for residential construction especially likely, while spending many nonresidential categories should match or exceed 2019 levels.”

Feb 04, 2020
Freedom Mortgage Earns Upgraded Outlook From KBRA

Strong servicing revenues and efficient cost-cutting measures highlighted; however, concerns raised over lack of hedging on substantial MSR investments.

Oct 04, 2023
Rithm Capital To Acquire Specialized Loan Servicing LLC

Transaction grows Newrez’s third-party servicing business to $180 billion.

Oct 03, 2023
Rocket Pro TPO Takes the Lead With Early Loan Limit Increase

EVP Mike Fawaz underscores the move's competitive edge, marking the firm's second consecutive year ahead of FHFA's anticipated adjustments.

Oct 02, 2023
Congress Passes Legislation To Extend National Flood Insurance Amid Shutdown Concerns

The move ensures continued flood insurance coverage, essential for many homeowners in high-risk flood areas, during peak hurricane season.

Oct 01, 2023
Equity Prime Mortgage Launches To Recruit Loan Officers

EPM aims to transform 4,000 retail loan officers into loan originators, emphasizing the growing benefits of the wholesale sector in the housing market.

Oct 01, 2023
Fannie Mae Introduces Spanish-Language Homebuyer Education Program

The new platform, HomeView en Español, aims to bridge language barriers hindering Hispanic-Americans from purchasing homes..

Sep 29, 2023