December Construction Spending Nudged Higher
But Increases 8.2 Percent Year-Over-Year
Construction spending barely budged higher in December versus November, but climbed 8.2 percent year-over-year, and jumped by double digits in calendar year 2015, compared to 2014.
Census Bureau data show that construction spending was at an estimated $1.116 trillion in November, a mere 0.1 percent hike over the previous month.
But December's result is 8.2 percent above the same month in 2014, and the value of construction in all of 2015 was $1.097 trillion, or 10.5 percent above the $993.4 billion spent in 2014.
Total private construction spending in December was $824.0 billion, or 0.6 percent less than the previous month's $828.8 billion.
Residential construction amounted to $429.6 billion, or 0.9 percent above November's $425.8 billion. Nonresidential construction totaled $394.4 billion in December, or 2.1 percent below the $403.0 billion of the previous month.
The value of private construction in 2015 was $806.1 billion, 12.3 percent higher than the $717.7 billion spent in 2014. Residential construction in 2015 was $416.8 billion, 12.6 percent above the 2014 figure of $370.0 billion. Nonresidential construction was $389.3 billion, 12.0 percent above the $347.7 billion in 2014.
Portland Cement Issues State Forecast; Strong Growth Predicted in West Region
The West region will use the most cement in the coming year, while other major areas of the nation will expand at more moderate rates, the Portland Cement Association predicts in its 2015-2016 State Forecast.
PCA forecasts growth in the West of 6.0 percent. The South will expand 4.3 percent, while the Northeast will see its consumption go up 4.2 percent, both of which would be more in line with national averages for 2016. Consumption in the Midwest will increase at a rate of 2.0 percent.
On a U.S. Census basis, robust growth is expected in the following regions: Pacific, 6.5 percent; South Atlantic, 6.3 percent; and East South Central, 6.1 percent.
The following regions will be next in line: Mountain, 5.2 percent; Middle Atlantic, 4.1 percent; and New England, 4.4 percent.
Portland Cement's State Forecast provides five-year outlooks on state demographics, economics, construction indicators and spending, and cement consumption.