New Construction Sees Small Monthly Decline in February But YOY Pace Stays Solid

Total construction spending during Feb. 2021 was estimated at a seasonally adjusted annual rate of $1,516.9 billion, -0.8% below the revised January estimate of $1,529 billion. According to the U.S. Census Bureau, the February year-over-year (YOY) figure is +5.3% above the Feb. 2020 estimate of $1,441.1 billion. During the first two months of this year, construction spending amounted to $213.2 billion, +4.9% above the $203.2 billion for the same period in 2020.

Private construction. Spending on private construction was at a seasonally adjusted annual rate of $1,165.7 billion, -0.5% below the revised January estimate of $1,171.6 billion. Residential construction was at a seasonally adjusted annual rate of $717.9 billion in February, -0.2% below the revised January estimate of $719.3 billion. Nonresidential construction was at a seasonally adjusted annual rate of $447.8 billion in February, -1% below the revised January estimate of $452.3 billion.

Not surprisingly considering the COVID-19 environment, the Lodging (-23.9%) and Amusement & Recreation (-22.5%) lagged other construction categories on a YOY basis.

Public construction. In February, the estimated seasonally adjusted annual rate of public construction spending was $351.2 billion, -1.7% below the revised January estimate of $357.4 billion. Educational construction was at a seasonally adjusted annual rate of $86.9 billion, -3.2% below the revised January estimate of $89.8 billion. Highway construction was at a seasonally adjusted annual rate of $102.3 billion, -0.6% below the revised January estimate of $103.0 billion.