­­­Construction Put-in-Place, (CPIP): Total U.S. construction spending continued to perform well in February 2021, especially in the private sector. Census Bureau non-seasonally adjusted (NSA), constant dollar CPIP data showed that February’s three month total (3MT) construction expenditures grew by 6.3% year on year (y/y) to $329.8 billion. Breaking that down, private expenditures advanced 7.6% y/y, state & local advanced by 2.5% y/y, and federal expenditures advanced by 2.1% y/y.

Total Construction: Table 1 presents CPIP data for total construction for both 3 month 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 76.2% of the total three months’ expenditures ending in February. State & local spending accounted for 22.0%; the remaining 1.8% was for federally financed projects. The private sector posted 7.6% growth and 7.4% growth for 3MT and 12MT y/y comparisons, respectively, resulting in a 0.1% increase in momentum for the month of February.  

Single-family residential construction – the highest-performing federal segment this month – recorded a 26.2% increase on a 3MT y/y basis and a 12.8% increase on a 12MT y/y basis.

Non-residential Construction: Table 2 shows the breakdown of non-residential construction (NRC). The overall decline rate was -0.9% on a 3MT y/y basis and +5.6% on a 12MT y/y basis, resulting in a decline in momentum of 6.4%.

Private NRC declined 1.9% on a 3MT y/y basis and grew 5.0% on a 12MT y/y basis, leading to a negative momentum of 6.9%. State and local expenditures were positive for both 3MT and 12MT y/y 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.