Construction Put In Place (CPIP)
Construction Put-in-Place, (CPIP): Total U.S. construction spending continued to perform well in January 2023, 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 8.0% year on year (y/y) to $417.1 billion. On a 12MT basis, private expenditures advanced 12.2% y/y, state & local increased by 5.8% y/y, and federal spending increased 11.2% 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 80.0% of the total three months’ expenditures ending in January. State & local spending accounted for 18.2%, while the remaining 1.7% was for federally financed projects. The private sector posted 7.4% growth for 3MT y/y and 12.2% growth for 12MT y/y, resulting in a 4.9% decrease in momentum for the month of January. Single-family residential construction recorded a 14.4% decrease on a 3MT y/y basis and a 2.5% increase on a 12MT basis. On a 3MT y/y basis, state and local construction recorded a 9.8% increase in spending.
Non-residential Construction: Table 2 shows the breakdown of non-residential construction (NRC). The overall rate was positive 21.9% for 3MT y/y, but a 12.4% increase on a 12MT y/y basis, resulting in a positive 9.5% momentum. Private NRC was up 27.3% for 3MT, but the 12MT value was a positive 16.8%, leading to a positive momentum of 10.4%. State and local expenditures were positive for 3MT and flat 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.