Construction Put-In-Place (CPIP)
Construction Put-in-Place, (CPIP): Total U.S. construction spending continued to perform well in January 2021, especially in the Private sector. Census Bureau non-seasonally adjusted (NSA), constant dollar CPIP data showed that January’s three month total (3MT) construction expenditures grew by 8.4% year on year (y/y), to $347.4 billion (B). On a 3MT basis, private expenditures advanced 9.5% y/y, State & Local advanced by 5.3% y/y, and Federal expenditures grew 4.1% y/y.
Total Construction: Table 1 presents CPIP data for total construction for both 3 month moving total and 12 month moving total y/y metrics. Momentum, defined as 3MT minus 12MT is also shown. Momentum provides market direction with green indicating stronger activity and red indicating slowing activity. Private construction accounted for 75.2% of the total three months expenditures ending in January 2021. State & local spending accounted for 23.0%; the remaining 1.8% was for federally financed projects. The private sector posted 9.5% growth and 8.1% growth for 3MT and 12MT y/y comparisons, resulting in a 1.4% increase in momentum for the month of January.
Single-family residential construction recorded a 25.7% increase on a 3MT basis and 12.2% increase on a 12MT basis, resulting in a 13.5% increase in momentum.
Non-residential Construction: Table 2 shows the breakdown of non-residential construction (NRC). The overall growth rate was 3.0% on a 3MT y/y and 7.0% on a 12MT y/y basis, resulting in a negative 4.0% momentum.
The growth rate of private NRC was +2.0% for the 3MT, and the rolling 12MT value was 6.4%, leading to negative momentum of 4.5%. State and local expenditures were positive for both 3MT and 12MT metrics.
At Gerdau we monitor the CPIP numbers every month to keep you, our customers, informed on the health of the U.S. construction market.