The total value of construction put in place (CPIP) for 2014 was $961.4 billion, according to the U.S. Census Bureau. This is the highest it’s been over the past six years and the fourth consecutive year that CPIP has increased since the recession hit. This figure is preliminary, so here’s hoping that number will increase as it gets revised over the next couple of months. Currently this is 5.6% higher than the total value of CPIP in 2013 which was $910.8 billion.
For December 2014 the seasonally adjusted annual rate of construction spending was $982.1 billion, the highest it has been all year.
The 2014 total value of private CPIP was $687.0 billion with $337.0 of that total being from nonresidential construction. The December seasonally adjusted annual rate of spending for private construction was at $698.6, the highest rate for the year and the sixth consecutive month it has increased.
The total value of public CPIP in 2014 was $274.4 billion. The annual rate of spending in December 2014 for public construction was $283.5 billion, The annual rate bounced back nicely from November when it had fallen to $280.4 billion but not enough to reach the high for the year of $285.6 that was reached in October.
As we mentioned earlier, the December annual rates and the total CPIP numbers are preliminary and will be revised a couple of times over the next few months. The revised numbers have been tracking upward once revised and we are expecting that trend to continue once all is said in done.
Good things are on the horizon for the construction industry in 2015 as total CPIP is expected to break the $1 trillion mark.