In April, the seasonally adjusted annual rate of construction spending topped the $1 trillion mark for the first time since November 2008. The annual rate of construction spending jumped 2.2 percent to $1,006.1 billion over March’s revised estimate of $984.0 billion. February’s estimate was revised up again from $972.9 billion to $979.0 billion, marking three consecutive months of growth.
Construction spending for the first four months of the year was at $288.7 billion. This is 4.1 percent more than the $277.3 billion spent during the same period in 2014.
Private construction spending was at a seasonally adjusted rate of $725.2 billion in April. March’s estimate was revised up top to $712.1 billion and February’s estimate was revised up to $706.0 billion. Private nonresidential construction spending rose to $372.1 billion, 3.1 percent higher than March’s revised figure of $361.0 billion.
The annual rate for public construction spending rose from $271.9 billion in March to $280.9 billion in April. February’s public construction spending estimate was revised up to $273.0 billion.
A couple of months ago we mentioned that there probably wasn’t any real reason for concern over a two-month decrease in construction spending in January and February. With the revised numbers now in, we see that total construction has been on the rise ever since the dip from December to January. Private construction followed the same pattern, increasing every month since January. Public construction has seen some ups and downs, but appears to be on track to outpace 2014.
We’ve been predicting that total construction put-in-place would surpass $1 trillion in 2015. The seasonally adjusted rate is there, so as long as the industry can maintain this pace, we should see our prediction come true by year’s end.