Macro Flash Report

Construction Spending


Last week, construction spending data was released and continues to show a loss of momentum from last years growth. The most likely culprit continues to be the sharp rebalancing of market expectations against a rapid interest rate cutting cycle.

Construction Spending – Total (White), Residential (Red), Non-Residential (Blue), Public (Yellow)

Construction Spending MoM declined by -0.2% in March, missing the market expected 0.3% increase and down from February’s upwardly revised reading of 0.0% from -0.2%. This marks the third consecutive month of downside surprises.

This drop was primarily due to a -0.5% decrease in private construction, with residential spending falling -0.7%, particularly in multi-family housing projects which dipped by -0.6%.

Nonresidential spending also declined, albeit slighter, by -0.2%.

In by 0.8%, driven by gains in power (3.3%) contrast, public construction spending grew , conservation and development (2.9%), commercial (2.7%), and health (1.9%) projects.

Despite the monthly decrease, year-over-year shows a 9.6% increase in construction spending as of March.