RealNews

US construction spending fell 0.4% in December 2006 to $1,177.7 billion, down 1.4% from December 2005. Private spending fell 0.8% while public spending rose 0.6%. Residential construction fell while private nonresidential construction rose. The combination of rebounding home sales and lagging new home construction should help to alleviate the inventory glut - the buyer’s market still has legs, but it’s not clear for how long.

construction,construction spending

DECEMBER 2006 CONSTRUCTION AT $1,177.7 BILLION ANNUAL RATE
The U.S. Census Bureau of the Department of Commerce announced today that construction spending during December
2006 was estimated at a seasonally adjusted annual rate of $1,177.7 billion, 0.4 percent (±1.3%)* below the revised
November estimate of $1,182.9 billion. The December figure is 1.4 percent (±2.2%)* below the December 2005 estimate
of $1,194.5 billion.
The value of construction spending in 2006 was $1,198.0 billion, 4.8 percent (±1.6%) above the $1,143.7 billion spent in
2005.
PRIVATE CONSTRUCTION
Spending on private construction was at a seasonally adjusted annual rate of $896.8 billion, 0.8 percent (±1.1%)* below the revised
November estimate of $903.8 billion. Residential construction was at a seasonally adjusted annual rate of $582.3 billion in December,
1.6 percent (±1.3%) below the revised November estimate of $592.1 billion. Nonresidential construction was at a seasonally adjusted
annual rate of $314.5 billion in December, 0.9 percent (±1.1%)* above the revised November estimate of $311.8 billion.
The value of private construction in 2006 was $928.7 billion, 3.3 percent (±2.4%) above the $899.0 billion spent in 2005. Residential
construction in 2006 was $630.3 billion, 1.9 percent (±2.1%)* below the 2005 figure of $642.3 billion and nonresidential construction

construction in 2006 was $630.3 billion, 1.9 percent (±2.1%)* below the 2005 figure of $642.3 billion and nonresidential construction
was $298.4 billion, 16.2 percent (±2.4%) above the $256.7 billion in 2005.
PUBLIC CONSTRUCTION
In December, the estimated seasonally adjusted annual rate of public construction spending was $280.9 billion, 0.6 percent (±2.1%)*
above the revised November estimate of $279.1 billion. Educational construction was at a seasonally adjusted annual rate of $75.6
billion, 1.8 percent (±3.8%)* above the revised November estimate of $74.3 billion. Highway construction was at a seasonally
adjusted annual rate of $74.2 billion, 1.1 percent (±5.0%)* below the revised November estimate of $75.1 billion.
The value of public construction in 2006 was $269.3 billion, 10.1 percent (±2.1%) above the $244.7 billion spent in 2005.
Educational construction in 2006 was $70.1 billion, 6.4 percent (±3.5%) above the 2005 figure of $65.8 billion and highway
construction was $75.1 billion, 14.8 percent (±5.1%) above the $65.4 billion in 2005.