Construction Spending Slowed in February
The Question Is Why Was Consensus Expecting Sequential Growth?
We have not previously published Construction data, but given the distorted (distorted thanks to unprecedented fiscal and monetary stimulus during the 2020-2023 period), economy of the past 4 years, today seemed like a good day to do so.
Today the U.S. Census Bureau published construction spending data for the month of February.
February Construction spending decreased 0.26% from January. It is interesting that consensus called for 0.7% growth given elevated interest rates and the fact that economic productivity / Real GDP is not exactly booming. January Construction spending was down 0.20% from December spending levels.
February marked the 4th consecutive month of declining Construction spending. The last time the U.S. Census Bureau reported 4 consecutive months of declining Construction spend was during the January 2020 - April 2020 period.
Private Construction was up modestly from January levels while Public Sector Construction declined and ought to decline far more sharply given the YTD fiscal deficit the U.S. is running. See details of the release HERE.
