US construction spending surged 1.3 percent from a month earlier to a seasonally adjusted annual rate of USD 1.28 trillion in January 2019, reversing an upwardly revised 0.8 percent drop in December and easily beating market expectations of 0.4 percent. It was the biggest increase in construction spending since April, as investment in public construction projects jumped 4.9 percent to its highest level since September 2010, marking the largest monthly advance since March 2004. Spending on federal government construction projects climbed 4.2 percent to the highest level since October 2017; and that on state and local government construction projects increased 4.9 percent to an over nine-year high. In addition, spending on private construction rose 0.2 percent after falling for two straight months. Construction Spending in the United States averaged 0.45 percent from 1964 until 2019, reaching an all time high of 5.90 percent in April of 1978 and a record low of -4.80 percent in February of 1975.
Construction Spending in the United States is expected to be 0.40 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Construction Spending in the United States to stand at 1.10 in 12 months time. In the long-term, the United States Construction Spending is projected to trend around 0.40 percent in 2020, according to our econometric models.