US: Construction spending is off to a strong start in 2019 - Wells Fargo

Today’s report on US Construction spending showed that total outlays rose 1.0%. Analysts at Wells Fargo, noted that the increase was mostly due to a 3.6% gain in public outlays. They added that residential rose 0.7%, but was bolstered entirely by a gain in home improvement spending.

Key Quotes: 

“Total spending jumped 1.0% during February, while January’s strong gain was revised even higher to 2.5%. Construction outlays are volatile during the winter months, but spending appears to be building momentum headed into the spring.

“Total nonresidential spending increased 1.2%, mostly owed to a 3.7% improvement in public outlays.”

“Alongside February’s drop in housing starts, single-family and multifamily spending fell 1.1% and 0.4%, respectively. The return of more typical winter weather likely dragged down spending.”