Construction Put In Place (CPIP)
Construction Put-in-Place, (CPIP): Total U.S. construction spending continued to perform well in March 2023, especially in the private sector. Census Bureau non-seasonally adjusted (NSA), constant dollar CPIP data showed that March’s three month total (3MT) construction expenditures grew by 4.3% year on year (y/y) to $403.3 billion. On a 12MT basis, private expenditures advanced 10.4% y/y, state & local increased by 7.9% y/y, and federal spending increased 13.2% 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 80.3% of the total three months’ expenditures ending in March. State & local spending accounted for 17.8%, while the remaining 1.8% was for federally financed projects. The private sector posted 2.0% growth for 3MT y/y and 10.4% growth for 12MT y/y, resulting in an 8.4% decrease in momentum for the month of March. Single-family residential construction recorded a 21.7% decrease on a 3MT y/y basis and a 3.3% decrease on a 12MT basis. On a 3MT y/y basis, state and local construction recorded a 14.2% increase in spending.
Non-residential Construction: Table 2 shows the breakdown of non-residential construction (NRC). The overall rate was positive 23.6% for 3MT y/y, but a 15.6% increase on a 12MT y/y basis, resulting in a positive 8.0% momentum. Private NRC was up 28.4% for 3MT, but the 12MT value was a positive 20.4%, leading to a positive momentum of 8.0%. State and local expenditures were positive 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.