Construction Put In Place (CPIP)

­­­Construction Put-in-Place, (CPIP): Total U.S. construction spending continued to perform well in June 2023, especially in the private sector. Census Bureau non-seasonally adjusted (NSA), constant dollar CPIP data showed that June’s three month total (3MT) construction expenditures grew by 2.2% year on year (y/y) to $500.7 billion. On a 12MT basis, private expenditures increased by 5.0% y/y, state & local increased by 9.4% y/y, and federal spending increased 19.3% y/y.

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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 78.1% of the total three months’ expenditures ending in June. State & local spending accounted for 20.2%, while the remaining 1.7% was for federally financed projects. The private sector posted 0.7% contraction for 3MT y/y and 5.0% growth for 12MT y/y, resulting in a 5.6% decrease in momentum for the month of June.  Single-family residential construction recorded a 24.3% decrease on a 3MT y/y basis and a 13.6% decrease on a 12MT basis. On a 3MT y/y basis, state and local construction recorded a 12.9% increase in spending.

Non-residential Construction: Table 2 shows the breakdown of non-residential construction (NRC). The overall rate was positive 21.3% for 3MT y/y, but a 17.4% increase on a 12MT y/y basis, resulting in a positive 3.9% momentum. Private NRC was up 25.9% for 3MT, but the 12MT value was a positive 22.1%, leading to a positive momentum of 3.8%. State and local expenditures were positive for 3MT and positive for 12MT metrics. At ˽av we monitor the CPIP numbers every month to keep you informed on the health of the U.S. construction market.

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