Construction Put in Place Spending Tops $1.078 Trillion in 2008

The U.S. Census Bureau of the Department of Commerce has announced that construction spending during December 2008 was estimated at a seasonally adjusted annual rate of $1,053.7 billion, 1.4% below the revised November estimate of $1,068.8 billion. The December figure is 3.6% below the December 2007 estimate of $1,093.5 billion.

The value of construction in 2008 was $1,078.9 billion, 5.1% below the $1,137.2 billion spent in 2007. But the nonresidential market ended the year way above 2007.

PRIVATE CONSTRUCTION

Spending on private construction was at a seasonally adjusted annual rate of $737.1 billion, 1.7% below the revised November estimate of $749.6 billion.

Residential construction was at a seasonally adjusted annual rate of $319.2 billion in December, 3.2% below the revised November estimate of $329.9 billion.

Nonresidential construction was at a seasonally adjusted annual rate of $417.9 billion in December, 0.4% below the revised November estimate of $419.7 billion.

The value of private construction in 2008 was $770.4 billion, 9.4% below the $850.0 billion spent in 2007. Residential construction in 2008 was $358.4 billion, 27.2% below the 2007 figure of $492.5 billion and nonresidential construction was $412.0 billion, 15.3% above the $357.5 billion in 2007.

PUBLIC CONSTRUCTION

In December, the estimated seasonally adjusted annual rate of public construction spending was $316.6 billion, 0.8% below the revised November estimate of $319.3 billion. Education construction was at a seasonally adjusted annual rate of $86.2 billion, 0.9% below the revised November estimate of $87 billion.

The value of public construction in 2008 was $308.5 billion, 7.4% above the $287.1 billion spent in 2007. Education construction in 2008 was $85.5 billion, 7.9% above the 2007 figure of $79.3 billion.

Craig DiLouie

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