Economic News Blog
Posted by: Steven Kline, Jr. 3. March 2014

Construction Spending Jumps 8.0% in January

According to the Census Bureau, the value of construction put in place in January 2014 was $64,689 (millions of real dollars). Compared to one year ago, spending in January was up 8.0%. This is the fastest rate of month-over-month growth since November 2012. Also, the month-over-month rate of growth has increased each of the last two months. The annual rate of change, which generally has been growing at a slower and slower rate since December 2012, grew at a faster rate in January.

Real construction spending is linked closely to real consumer spending. Real consumer spending has been growing at a constant rate since May 2013. However, spending looks like it might start growing at a slightly faster rate in upcoming months. This could be an indication that real construction spending continue to grow at a faster rate. However, if consumer spending growth stays flat or slowly decelerates, then it is likely that real construction spending will continue to grow at a slower rate.

Real construction spending is a good leading indicator for construction materialshardware, and HVAC industrial production.

 

Comments are reviewed by moderators before they appear to ensure they meet Gardner Business Media’s submission guidelines.
blog comments powered by Disqus