CONSTRUCTION SPENDING INCREASES 9 PERCENT IN 2004, STRONGEST ANNUAL GROWTH SINCE 1996 (02/02/2005)
The U.S. Commerce Department's Census Bureau Feb. 1 reported that construction put in place during December 2004 was estimated at a seasonally adjusted annual rate of $1.03 trillion, which is 1.1 percent above the revised November estimate of $1.02 trillion and 8.7 percent above the December 2003 estimate of $949 billion. The value of construction spending in 2004 was $998 billion, 9 percent above the $916 billion spent in 2003, marking the strongest single-year growth since 1996.

Spending on private-sector construction in December was estimated at a seasonally adjusted annual rate of $789 billion, 0.9 percent above the revised November rate of $782 billion. The value of private construction in 2004 was $765 billion, 10.9 percent above the $690 billion spent in 2003.

The estimated seasonally adjusted annual rate of public construction spending in December was $243 billion, 1.8 percent above the revised November rate of $238 billion. The value of public construction in 2004 was $236 billion, which is 3.4 percent above the $226 billion spent in 2003.

Nonresidential construction spending increased 1.6 percent in December, rising from November’s revised seasonally adjusted annual rate of $457 billion to $464 billion.

Contracts for office construction projects rebounded in December, advancing to an estimated seasonally adjusted annual rate of $46 billion, which is 2 percent above the revised November rate of $45 billion. Spending for highway and street construction picked up in December as well, increasing 3.2 percent from the revised November rate of $66 billion to a seasonally adjusted annual rate of $68 billion. Spending for commercial construction projects continued to climb in December, increasing to a seasonally adjusted annual rate of $67.6 billion, which is 0.2 percent above the revised November rate of $67.5 billion.

The total value of transportation-related construction projects decreased in December, falling to a seasonally adjusted annual rate of $26 billion, which is 1.1 percent below the revised November rate of $26.4 billion. Spending for educational building construction advanced 1.5 percent in December, increasing from the revised November rate of $78 billion to a seasonally adjusted annual rate of $80 billion.

Contracts for power-related construction projects jumped 4.1 percent in December, advancing from the revised November rate of $32 billion to $33 billion.

For more information, visit http://www.census.gov/const/C30/release.pdf.


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