Construction Put In Place (CPIP)
Construction Put-in-Place, (CPIP): Total U.S. construction spending continued to perform well in July 2021, especially in the private sector. Census Bureau non-seasonally adjusted (NSA), constant dollar CPIP data showed that July’s three month total (3MT) construction expenditures grew by 12.4% year on year (y/y) to $412.5 billion. On a 12MT basis, private expenditures advanced 19.8% y/y, state & local declined by 3.3% y/y, and federal spend decreased 19.0% y/y.
Total Construction: Table 1 presents CPIP data for total construction for both 3 month total and 12 month 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 74.0% of the total three months’ expenditures ending in July. State & local spending accounted for 24.6%, while the remaining 1.4% was for federally financed projects. The private sector posted 19.8% growth for 3MT y/y and 12.7% growth for 12MT y/y, resulting in a 7.1% increase in momentum for the month of July.
Single-family residential construction recorded a 53.2% increase on a 3MT y/y basis and a 30.7% increase on a 12MT basis. On a 3MT y/y basis, state and local construction recorded a 3.3% decrease in spending.
Non-residential Construction: Table 2 shows the breakdown of non-residential construction (NRC). The overall rate was positive 0.7% for 3MT y/y, but a 3.5% increase on a 12MT y/y basis, resulting in a -2.8% momentum.
Private NRC was up 3.0% for 3MT, but the 12MT value was a positive 4.3%, leading to a negative momentum of 1.3%. State and local expenditures were negative for 3MT and positive for 12MT metrics.
At Gerdau we monitor the CPIP numbers every month to keep you informed on the health of the U.S. construction market.